Brazilian Companies Lead the Charge: Dominating 50% of LATAM FinTech Deals in 2024

Brazilian Companies Lead the Charge: Dominating 50% of LATAM FinTech Deals in 2024

As we look ahead to 2024, the Latin American FinTech sector is witnessing significant changes in investment dynamics. The region’s FinTech deal activity has seen a notable drop, reflecting broader trends and challenges in the financial technology landscape. This article provides an overview of the key statistics and trends shaping the LATAM FinTech market.

Decline in LATAM FinTech Deal Activity

The Latin American FinTech sector has experienced a dramatic decline in both funding and deal activity in 2024. Here are some key statistics:

  • **Total funding**: FinTech companies in LATAM raised **$2.37 billion** in 2024, a **13% decrease** compared to **$2.72 billion** in 2023.
  • **Year-over-year comparison**: This amount represents a **26% decline** from the **$3.19 billion** raised in 2020.
  • **Deal volume**: Only **171 deals** were completed in 2024, marking a staggering **65% drop** from **490 deals** in 2023.

These figures emphasize the ongoing challenges in attracting investor interest, with funding levels remaining significantly below those of previous years.

Brazil’s Continued Dominance in LATAM FinTech

Brazil continues to lead the LATAM FinTech market, securing a substantial share of the region’s deals in 2024:

  • **Total deals in Brazil**: The country accounted for **87 deals**, representing a **51% share** of the market.
  • **Comparison to previous year**: This figure indicates a **60% decrease** from the **218 deals** recorded in 2023.
  • **Other countries**: Mexico followed with **31 deals** (18% share), while Colombia gained traction with **20 deals** (12% share), surpassing Chile.

The shifting rankings highlight Colombia’s rising prominence in the Latin American FinTech landscape, despite an overall decline in deal volume.

Celcoin’s Major Funding Round

One of the standout events in the LATAM FinTech space is the significant funding round secured by Celcoin, a leader in the Banking as a Service (BaaS) segment:

  • **Funding amount**: Celcoin raised **$125 million** in a funding round led by Summit Partners.
  • **Investor participation**: Existing investor Innova Capital and FinTech executive John Coughlin also participated in this round.
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Founded in 2016, Celcoin provides essential financial infrastructure services, focusing on payments, banking, and lending. The platform supports over **400 financial institutions** and processes more than **200 million Pix transactions** each month.

Future Outlook for Celcoin

The new capital will enable Celcoin to expand its operations and maintain its leadership in the BaaS and embedded finance markets. The company has demonstrated impressive growth, with **$63 million** in annual recurring revenue in Q1 2024, representing a **140% year-over-year increase**. Recent strategic acquisitions, including Galax Pay, Flow Finance, and others, further enhance its market position.

In conclusion, while the LATAM FinTech sector faces significant hurdles, the resilience and innovation demonstrated by companies like Celcoin signal potential for recovery and growth in the coming years. For more insights on the evolving FinTech landscape, visit our FinTech Updates page.

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