LatAm Tech Weekly

#178 - Powered by Nasdaq: VC-Backed Companies Taking Advantage of Slow M&A Market, AI jobs, deals of the week... and much more!

Mar 16, 2025

Weekly writing about what is happening in LatAm tech. By day, I work at Itau BBA advising mid-sized technology companies in their next strategic transaction. By night, I am reading and learning about technology in general (now, with a focus on AI). During the weekends, I’m writing the LatAm Tech Weekly.

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Happy Sunday!

Yesterday I had the pleasure of joining the event by AIJA - International Association of Young Lawyers. We had a great discussion about the fintech landscape in Brazil, exploring key topics such as regulatory innovation driven by the Brazilian Central Bank, the influx of foreign investment seeking opportunities in the sector, and other crucial trends shaping the market.

The audience was a new experience for me—a room full of lawyers! But I truly enjoyed the conversation and the fresh perspectives it brought.

A big thank you for the invitation and the warm hospitality—it was a pleasure to be part of this discussion!

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Opinions expressed here are solely my own and does not represent those of people, institutions, organizations that I may or may not be associated with in any capacity, unless explicitly stated.

A great read this week was PitchBook's analyst note titled VC-Backed Companies Taking Advantage of Slow M&A Market. The report highlights a significant shift in startup acquisitions, with VC-backed companies emerging as the primary buyers amid a slowdown in traditional M&A activity. Despite the fact that the note is focused on the U.S. market, I can trace some parallels to what is occurring currently in Latin America.

In 2024, an estimated 956 sales involving U.S. VC-backed companies were completed—an unexpectedly high volume given the current state of the venture market. This level of activity makes 2024 one of the most active years for startup M&A in the U.S., surpassing all but three other years. A key driver of this M&A wave was the rise of VC-backed companies acquiring other VC-backed startups, which accounted for 33.7% of all startup acquisitions in 2024. This trend, which has been increasing over the past two decades, has accelerated since 2019, particularly as Big Tech firms scaled back their acquisitions due to regulatory pressures and shifting market conditions. Shifting gears to LatAm, aggregate data for the region is still a challenge, but it is true that VC backed companies that are capitalized have been recently in a buying spree. Namely, QI Tech acquired Singulare back in 2024, Brazilian Involves acquired Chilean data intelligence startup Datamind in February of this year, and BYX Capital acquired Nvio…to name a few.

When looking at acquisitions by the big tech firms in Brazil, TOTVS, a prominent software company, has executed over 40 acquisitions to strengthen its market position in the past few years. However, in 2024, the firm conducted only 3 M&As. In the U.S., the same trend occurred, the 25 top tech companies completing only 17 acquisitions of VC-backed startups in 2024, spending just $3.3 billion on these deals—the lowest amount recorded in a decade. For comparison, these same firms spent $19.2 billion on acquisitions in 2020. Instead of acquiring companies outright, many Big Tech firms are shifting toward Corporate Venture Capital (CVC), opting to take minority stakes in startups rather than pursue full acquisitions, likely to avoid further regulatory pressure.

As startups remain private longer and raise increasingly large funding rounds, their ability and necessity to engage in M&A have grown. Over the past four years, VC-backed acquirers raised nearly 29% of the total U.S. VC capital, signaling a structural change in how late-stage startups approach growth. In 2024, VC-backed companies completed 277 startup acquisitions, making it the third-highest year in the past decade, trailing only 2021 and 2023. This surge in M&A activity is being driven by lowered startup valuations, reduced regulatory scrutiny for private companies, and the high volume of capital raised by late-stage startups in recent years.

Again due to the lack of data, we do not know the exact number of such type of transaction in Latin America alone. However, we can state with a reasonable conviction that the trend is being seen. Examples include Celcoin, a Brazilian fintech company backed by Summit Partners, acquiring CobranSaaS and Rappi acquiring Fountain9, an AI-driven company. Skyone has also completed a series of acquisitions. Since the IPO window in Brazil has been closed for more than 3 years now, and that the size of an “IPO-able” company has increased, late stage companies look for growth inorganically.

A prime example of this trend in the U.S. is the most active VC-backed acquirers in recent years, which include Databricks (11 acquisitions), Stripe (5), Figma (4), and Automattic (4). These companies exemplify how mature startups are leveraging acquisitions as a key growth strategy, positioning themselves for long-term market dominance. Another important factor fueling this M&A wave is debt financing, which has become an increasingly available tool for late-stage startups. Over the past four years, more than $25 billion in loans have been issued to VC-backed companies engaging in acquisitions, demonstrating how startups are tapping into capital sources that were previously reserved for public companies and private equity-backed firms.

While Big Tech's return to startup M&A remains uncertain, VC-backed buyers are expected to continue driving acquisition activity, leveraging their strong capital positions and access to private growth financing. The venture capital market is evolving into a hybrid of late-stage growth investing and private equity, where M&A is no longer just an exit strategy but a key tool for expansion.

This shift underscores how VC-backed companies are no longer just disruptors—they are now market consolidators, actively shaping the next phase of venture capital and the startup ecosystem. As companies stay private longer, consolidate industries, and increasingly fund their own growth through acquisitions, it’s clear that M&A will play a central role in the evolution of venture-backed businesses in the years ahead.

Changing subjects, on the AI front, AI inference spending is projected to increase by over 70% year-over-year, reaching $208.2 billion by 2026. This surge is being driven largely by the rise of "reasoning" models, which require more advanced processing capabilities. As demand for AI inference grows, companies like Cerebras, Groq, and major Big Tech players are ramping up efforts to challenge NVIDIA’s dominance by developing custom accelerator chips designed to optimize AI performance. I also read in the Wall Street Journal that 36% of IT jobs posted in U.S. in January were AI related and that 23% of tech jobs in 2025 seek AI skills…

General news:

The Magnificent Seven lost $759 billion in market value on Monday, with Tesla leading the decline, plunging over 15% and shedding $130 billion. Nvidia and Apple also suffered steep losses of $130 billion and $174 billion, respectively. The sell-off follows growing concerns over China's DeepSeek, an AI competitor to OpenAI. Meanwhile, the Fabulous Four—Baidu, Alibaba, Tencent, and Xiaomi—are surging, doubling their market value as U.S. tech giants struggle, leading some to speculate that this marks the end of Big Tech dominance in the West.
Zoop and Barte launched Tap to Pay, allowing businesses to accept contactless payments directly on smartphones, eliminating the need for card machines. This enhances omnichannel payments in Brazil and simplifies in-person sales.
IAG, owner of British Airways, launched a €200 million venture fund to invest in early-stage startups focused on aviation innovation, customer experience, and sustainability. The fund will be deployed globally over five years, alongside the IAGi Accelerator, which tests startup solutions in real-world conditions.
El Salvador is positioning itself as a crypto hub, attracting major players with its Bitcoin-friendly policies. While the country has advanced in digital finance, challenges such as regulatory clarity, financial inclusion, and infrastructure remain key to long-term success.
ViaCarte is expanding to Brazil with tokenization technology to enhance secure cross-border payments. Currently operating in Mexico, Colombia, and Chile, it integrates Visa Direct and Mastercard Send for instant transactions. Google Pay support will launch first, followed by Apple Pay.
Agibank appointed Rafael Morais as Director of Risk and Controllership to strengthen governance and financial transparency. With 23 years of experience, including roles at Caixa and Anbima, Morais will oversee risk management strategies as the bank enhances its corporate structure.
Sonda CEO Marcelo Castiglione set Brazil, Colombia, Mexico, and Chile as 2025 priorities, with $5 billion in business opportunities. Sonda led Mexico’s first electromobility project and gained 50 new clients in Brazil in 2024. The company is also eyeing expansion into Paraguay and Honduras.
Tpaga introduced AI-powered voice command payments, allowing users to make transactions by saying phrases like “Pay my electricity bill.” Built with Anthropic and AWS Bedrock, the system integrates with banks and fintechs while ensuring security through biometric authentication and voice recognition.
AliExpress is strengthening its partnership with Magalu, focusing on faster deliveries and cloud infrastructure to scale operations in Brazil’s competitive e-commerce market.

Deals:

Sequoia Capital made its first investment in Brazil in over a decade, backing Enter, an AI startup automating corporate legal defenses. The company has raised $5.5 million and helps businesses reduce labor and consumer lawsuit costs, detecting fraud and increasing case win rates by up to 21%. With 34,000 cases contested, Enter plans to expand further into labor lawsuits, a major burden for Brazilian enterprises.
Rio Bravo acquired JPP Capital, adding R$2 billion in assets and strengthening its position in private credit and structured finance. With R$18 billion under management, Rio Bravo is in talks for further acquisitions to expand its asset management capabilities.
Sem Parar received regulatory approval from CADE to acquire Gringo, a super app with 2.5 million monthly users. The acquisition strengthens Sem Parar’s mobility and financial services, aligning with its Central Bank-approved strategy to expand into digital payments.
Grão Direto secured R$90 million in a round led by Kaszek and Bradesco, marking Kaszek’s first agribusiness investment. The funding will scale financial and digital services for grain trading.

General news:

Fraud involving Pix transactions has caused nearly R$3 billion in losses over the past two years, with a 43% increase in such crimes, according to FEBRABAN. Despite its secure design, Pix is being exploited for money laundering. Banks are investing over R$5 billion in security measures, while FEBRABAN is calling for stricter regulations and stronger public-private partnerships to combat financial fraud.
Brazil’s Central Bank acknowledged it is struggling to keep up with fraudsters, as Pix and other digital transactions evolve faster than fraud detection tools. Authorities are ramping up supervision and cybersecurity efforts, but criminals continue to adapt quickly, especially with the rise of dummy accounts used for illicit activities.
Conta Simples is investing R$20 million in its 2.0 platform upgrade, adding 12 new features, including support for Google Wallet (Apple Wallet coming soon), batch payments, ERP integrations with SAP and Oracle, and AI-powered expense reports. The fintech is also exploring BNPL, Pix Parcelado, and Pix by Proximity, with CEO Rodrigo Tognini aiming to scale revenue 5x in the coming years.
Inter is expanding to Argentina, launching a Global Investment Account that allows users to invest in U.S. Treasury bonds, stocks, and ETFs. Partnering with Grupo Bind, the service will let Argentinians fund accounts in pesos, convert to dollars, and access exclusive perks. With 36 million+ clients, Inter sees Argentina as a key market due to its strong dollar-saving culture.
São Caetano do Sul is launching a Startup Acceleration Program at its Technology Park, with an event on March 25 connecting entrepreneurs, investors, and industry leaders. The program offers mentorship, networking, and investment opportunities to support early and growth-stage startups.

Deals:

Sunrize, a plant-based supplement brand, raised R$2.5 million in seed funding to expand its digital presence and launch Sunrize Shakehouse, a franchise network for protein shakes. Investors include Renato Breia (Nord Investimentos) and singer Di Ferrero (NX Zero). The first franchises will open in Salvador, Santos, and Indaiatuba, with expansion plans across Brazil.
Quill, a proptech automating real estate transactions with AI, secured R$2.5 million from Sororitê Fund 1 and other investors. The funding will enhance document verification, reduce bureaucracy, and expand the team by 60%. The startup aims to reach breakeven by 2025 and streamline over 1 million real estate transactions in 2024.
MultiID raised R$10 million to develop fraud prevention technology using facial biometrics. Backed by Ricardo Valverde and Carlos Barcellos, pioneers in facial recognition, the startup integrates multi-factor authentication and device fingerprinting to combat AI-driven fraud.
Batech, a Mexican AI security startup, raised $500,000 in pre-seed funding and expanded across Latin America. Its AI-powered security system reduces petty theft by 70% and boosts worker productivity by 30%. The company plans a $1.5 million seed round in 2025.

General News:

Stark Bank is expanding into the crypto market, offering financial solutions tailored for digital asset companies. The startup aims to bridge traditional banking and crypto by focusing on compliance and security, forming partnerships with major exchanges and blockchain firms to establish itself as a key player in the sector.
OpenAI has launched new AI tools for corporate automation, allowing businesses to integrate intelligent agents into workflows to enhance productivity and streamline operations. The customizable features cater to various industries, from data analysis to customer interactions, marking another step in OpenAI’s push to revolutionize enterprise AI adoption.
Brazil is the most optimistic country about AI in Latin America, according to SAP’s latest report. However, infrastructure limitations and a lack of skilled professionals remain barriers to wider adoption. While Brazilian companies are eager to integrate AI into operations, challenges in training talent and improving access to AI tools must be addressed to sustain growth in the sector.
Doris, the Brazilian startup specializing in AI-powered virtual fitting rooms, has been invited to showcase its Mirror technology at NVIDIA GTC 2025, a top global AI event. The system allows users to digitally try on clothes, get personalized size recommendations, and explore outfit combinations using generative AI.
Lemon and Pomelo launched the VISA Lemon Card in Peru, allowing users to pay in soles and earn up to 1% Bitcoin cashback. After success in Argentina, where Lemon issued over 1 million cards, the company now aims for 1.5 million users in Peru by year-end. The card supports BTC, ETH, USDT, and USDC payments worldwide, blending Web3 and traditional finance.
TikTok Shop is officially launching in Brazil, marking a major step into social commerce. The platform integrates shopping features into videos and live streams, leveraging its massive influencer network to boost engagement and sales.
Valid is aiming to double its size within five years, focusing on cybersecurity, digital identity, and smart payment solutions. Investments in AI, cloud computing, and authentication technologies are central to its strategy, as the company strengthens its presence in Brazil and international markets.

Deals:

Plata, the Mexican fintech, has become the country’s newest unicorn after raising $160 million in a Series A round led by Kora. Founded in 2023 by Neri Tollardo, Plata specializes in digital consumer credit products and now operates as a fully licensed bank. With over 1 million active users, the company controls 10% of all newly issued credit cards in Mexico, highlighting the country’s booming fintech sector.
MGX has invested $2 billion in Binance, marking the first institutional capital injection into the exchange. The investment, paid entirely in stablecoins, signals growing institutional interest in blockchain as financial infrastructure. MGX acquires a minority stake to accelerate tokenization, payments, and blockchain expansion, reinforcing Binance’s compliance and security efforts.

General news:

Itaú is leveraging AI to improve financial well-being, using technology for personalized insights, smarter credit decisions, and enhanced customer support. The initiative aligns with a broader industry shift toward AI-driven financial services, helping clients manage their money more efficiently.
The CVM (Brazilian SEC) has ordered Mercado Bitcoin to suspend its token offerings due to regulatory irregularities. The decision underscores growing oversight in the cryptocurrency market, reinforcing the need for compliance in token sales and ensuring adherence to Brazil’s securities laws.
Syonet hit R$60M in revenue in 2024, a 30% increase from the previous year, driven by expansion into Mexico and serving 2,500+ dealerships across four countries. With AI and automation at its core, Syonet plans to grow another 30% in 2025, targeting R$78M in revenue, and will add 107 new jobs to fuel expansion in the automotive tech sector.
Alexia Ventures has launched a $100M fund to invest in AI, B2B, and Enterprise Software startups focused on real impact, rather than hype. Its first $85M fund backed 10 companies, including N5. With checks ranging from $2M to $6M, the firm prioritizes Series A rounds with a focus on scalability, profitability, and global expansion, particularly in Latin America.
Minsait Payments has rebranded as Nuek, reinforcing its autonomy and leadership in the digital payments sector. Operating in 20+ countries, the company provides card issuance, payment acceptance, and Open Finance on a scalable platform. CEO Javier Rey highlights Nuek’s mission to drive industry transformation through secure and flexible fintech solutions.
Brazil, as the current BRICS chair, is pushing for blockchain adoption to streamline trade among member nations. The proposal aims to enhance transaction efficiency, reduce costs, and facilitate cross-border trade, though Brazil is not advocating for a common BRICS currency. The Central Bank and Finance Ministry are leading the initiative, leveraging expertise from Brazil’s Drex digital currency project.
Pix is set to surpass credit cards as Brazil’s most used e-commerce payment method this year, according to Ebanx. Its speed, lower costs, and instant settlements have accelerated adoption, particularly in online retail, digital services, and travel. Merchants benefit from faster confirmations and reduced fees, while the new Pix Automatic feature is set to boost recurring payments.
A recent investigation has revealed that organized crime groups are using fintechs in Brazil’s financial hub, Faria Lima, for money laundering. The Brazilian Association of Fintechs (ABFintechs) condemned the incident and is working with authorities to tighten security and regulations. Despite concerns, the fintech sector remains strong, with ABFintechs emphasizing the need for continuous regulatory improvements to protect investors and consumers.

Deals:

ClickBus is acquiring 80% of RJ Participações from Totvs for R$49.6M, furthering its M&A-driven growth strategy. Totvs, which acquired RJ through Bematech in 2015, is selling to optimize its portfolio after RJ posted an EBITDA of R$3M in 2024. The deal, pending regulatory approval, comes as ClickBus, with R$2B in GMV, prepares for a potential IPO. Shout out to CFO Felipe Vanzelli who got the deal done!
DataScope, the Chilean process automation startup, has acquired Safety for Life to enhance workplace risk management solutions. Safety for Life brings a decade of expertise in preventive management, complementing DataScope’s technology-driven approach. The acquisition strengthens DataScope’s regulatory compliance offerings and improves operational efficiency for its clients.

General news:

Healthtech investments soared in February, recording a 1,419% YoY growth and raising $26.4M across three rounds, led by Alice’s $22M Series C extension. Cleantechs also made waves, with Mexican startup VEMO securing $63.7M, driving an 18,735% increase. Meanwhile, fintech funding declined by 54% YoY but remained strong at $64M, with Brazil’s Capim ($26.7M Series A) and Neofin ($6M Seed) leading the way. Insurtechs surged 257%, highlighted by Azos’ $30.5M Series B. In total, Latin American startups raised $220M in February, with Brazil capturing 59% of the total.
C6 Bank is expanding its physical footprint, launching three new investment-focused offices in Curitiba, Campinas, and Goiânia. This follows 2023 openings in Brasília, Rio de Janeiro, Belo Horizonte, and Porto Alegre. The offices target high-net-worth clients with investments exceeding R$300K, offering personalized financial services. C6 Bank, with 35M+ clients, plans additional branches in Ribeirão Preto and Northeast capitals. Each location starts with seven employees, each managing 300–400 clients.
Betterfly is shutting down operations in Colombia, Ecuador, Peru, Argentina, and Brazil, consolidating efforts in Chile, Mexico, and Spain, which account for 94% of its revenue. The restructuring includes 30 layoffs and a strategic focus on expanding into the U.S. by 2026. Despite past downsizing, Betterfly claims over five years of cash runway, a reduced burn rate, and a strengthened core business in health and wellness solutions.
Juztina, the Peruvian legaltech startup, is expanding into Colombia, with plans for Mexico and Argentina. Its AI-powered chat streamlines legal research, accessing 4M+ documents on laws and regulations, cutting research time for lawyers, students, and professors. With 100K+ users and 1M queries in six months, Juztina is reshaping legal tech in Latin America and aims for regional expansion by 2026.
SoftBank is acquiring Sharp's factory to build a new AI-focused data center, in partnership with OpenAI. The project will advance AI and robotics technologies, leveraging SoftBank’s infrastructure and OpenAI’s models. The facility will develop advanced hardware and software systems, reinforcing SoftBank’s push into AI-driven innovation.
Igah Ventures, a Patria-backed VC firm, raised R$157M in just three weeks, blending investments from its third and fourth funds. Distributed by XP, the fund attracted 1,000+ investors, with 60% committing at least R$500K. 70% of the capital is allocated to Fund 4, still fundraising, while 30% will acquire discounted positions in Fund 3, which holds stakes in Avenue, Unico, and Hashdex. Igah sees a strong investment window amid the market’s post-2021 correction.

Deals:

Voa Health secured $3M in a seed round led by Prosus Ventures, fueling the expansion of its AI-driven clinical automation platform. Serving 20K doctors and processing 80K+ consultations monthly, Voa has already reached R$2.5M in annualized revenue and targets R$12M within 18 months.

I have asked you again on LinkedIn what tech events do you suggest for this year, here is a selection of your responses curated by me for the first half of the year. If you want to see the full list click here.

Cubo Itau turns 10
Date: March 19
Location: Sao Paulo
Description: As Cubo Itaú turns 10, we’re launching a well-being journey to foster a healthier and more active tech ecosystem. From March to September, we'll actively promote sports, lifestyle assessments, and mental well-being to our community. Join us at the kickoff event featuring Paralympic gold medalist Júlio César Agripino dos Santos.
👉 bit.ly/evento-cubo-wellbeing | Use code CUPOM-CUBO
South Summit
Dates: April 9-11
Location: Porto Alegre, Brazil
Overview: South Summit Brasil is one of the main innovation and technology events in Latin America, bringing together startups, investors, companies and global leaders to foster connections and explore business opportunities. Held annually in Porto Alegre, the event is an extension of the original South Summit, started in Madrid, and highlights the potential of the Brazilian and Latin American innovation ecosystem. With a program that includes lectures, panels and startup competitions, South Summit Brasil promotes the exchange of ideas, drives innovation and puts Brazil on the global technology map.
More info
Brazil at Silicon Valley
Date: April 21-23
Location: Sunnyvale, California
Overview: Brazil at Silicon Valley is an annual conference organized by Brazilian students from Stanford and Berkeley universities, with the aim of connecting the most influential Brazilian leaders and Silicon Valley. Held in California, the event brings together entrepreneurs, investors and academics to discuss the future of innovation and development in Brazil, addressing topics such as technology, sustainability and digital transformation, promoting dialogue between the Brazilian ecosystem and global trends.
INVITE ONLY
Latin American Forum by Riverwood
Dates: April 24-25
Location: Miami
Description: off the record gathering with the main stakeholders, founders, and service providers of the tech ecosystem in Latin America, organized by Riverwood.
INVITE ONLY
Web Summit Rio
Date: April 27-30
Location: Rio de Janeiro, Brazil
Web Summit Rio is the Brazilian edition of one of the largest global technology and innovation events, known for bringing together startups, investors, company leaders and sector enthusiasts. With a program that includes lectures from renowned experts, panels on emerging trends and networking opportunities, Web Summit Rio has established itself as a strategic space to boost ideas, promote partnerships and connect the global innovation ecosystem.
More info
Itau BBA Fifth Annual Tech Summit
Date: May 13
Location: New York
Description: An afternoon in New York with the main founders & funders of LatAm with panels and 1:1 sessions.
INVITE ONLY
APIX
Date: May 15
Location: São Paulo
Description: Over the last decade, APIX has become one of the most anticipated global events focused on APIs and Integrations and its role on business strategies. A dynamic day filled with knowledge sharing and networking for professionals seeking new connections, global trends, partnership opportunities, and valuable technical and business insights regarding Open Finance, Partner Ecosystems, Legacy Modernization and Digital Experiences.
MORE INFO SOON!!!
VTEX Day
Date: June 2-3
Location: São Paulo
Description: Considered one of the largest digital commerce events in the world, VTEX Day brings together big names in retail, including customers, suppliers and influencers, in an environment dedicated to innovation and knowledge. The event is an opportunity to explore solutions, discuss trends, strengthen connections and gain valuable insights to boost business.
More info
FEBRABAN Tech
Date: June 10-12
Location: São Paulo
Description: FEBRABAN Tech is a fundamental event for the financial sector, bringing together banks, fintechs, financial institutions and experts to debate the innovations that are shaping the future of the market. Held annually by the Brazilian Federation of Banks (FEBRABAN), the event reached a record of 55 thousand visitors in 2024.
More info