Within the vast constellation of emerging markets, FinTech Collective’s Emerging Cities thesis focuses on four metropolitan hubs that are fast becoming magnets for talent and resources, the first ingredients to the development of a formidable entrepreneurial ecosystem. Three of these hubs are in Latin America – Sao Paulo, Bogotá, and Mexico City – and one in Africa - Lagos. Since our first investment in Africa in 2015, we have looked at emerging markets with patient and keen interest.
In Latin America, we have built a portfolio of eight companies which expand on themes of financial infrastructure, digital banking, software and workflow automation for small businesses and alternative lending. Two are in Brazil (Contabilizei and Rebel), with the latter having announced its merger with Geru this month, to manage a 1.5b BRL credit portfolio. Minka (whose seed round we led) is in Colombia, and the remaining five are in Mexico (minu, Runa, Oyster, Fondeadora and Oxio).
Mexico is unique in both its stage of development and scale of opportunity. Specifically, we would highlight the following trends: growing connectivity and digitization, favorable regulatory environment, high level of urbanization, maturing talent pipeline and rising success stories. In a digitally turbocharged ecosystem, whose dynamism grows by the day, we see opportunity for our current cohort of five companies to thrive.
In this medium post, Carlos Alonso Torras – who covers Latin American investments for FinTech Collective – explores how our cohort of companies in Mexico is contributing towards the emergence of a spending middle class previously marginalized by traditional financial systems. We look forward to remaining active in Mexico and throughout the wider region, supporting entrepreneurs and ventures reimagining the better financial future that millions deserve.