Brazil Solidifies LATAM FinTech Leadership with 50% of 2024’s Top 10 Investment Deals
As we look ahead to 2024, the LATAM FinTech landscape shows significant shifts in investment trends and funding dynamics. Despite a reduction in overall funding, key players are emerging, and investment preferences are evolving across the region.
Overall Funding Trends in LATAM FinTech for 2024
In 2024, the LATAM FinTech sector experienced a notable decline, with total funding reaching $2.4 billion across 140 deals. This marks a 13% decrease from the $2.7 billion raised in 2023 and a dramatic 56% reduction in the number of transactions compared to the previous year. The current funding level represents a 26% contraction since 2020 when the sector enjoyed $3.2 billion across 458 deals.
Key Statistics
- Total funding in 2024: $2.4 billion
- Number of deals: 140
- Year-over-year funding decline: 13%
- Comparison to 2020 funding: 26% decrease
- Average deal value in 2024: $16.9 million
Interestingly, while the number of deals has decreased, the average deal size has increased significantly, rising from $8.5 million in 2023 and more than doubling from $7 million in 2020. This trend indicates a shift towards larger funding rounds for more established players, as investors become more cautious in an uncertain economic environment.
Brazil’s Continued Dominance in LATAM FinTech
Brazil has solidified its position as the leading market in the LATAM FinTech sector, securing five of the top ten deals in both 2023 and 2024. This consistency underscores Brazil’s role as a critical hub for innovation and investment in the region.
Top Players in LATAM FinTech
While Brazil continues to thrive, other markets are experiencing shifts:
- Mexico: Declined from three deals in 2023 to two in 2024.
- Argentina: Made a comeback in the rankings after being absent last year.
- Chile and Colombia: Each maintained one deal in both years, reflecting selective investor interest.
The changes in deal distribution suggest a potential shift in investment focus, as investors look to diversify beyond historically dominant markets.
Major Deal Highlight: Ualá’s Series E Funding
Ualá, an Argentine neobank, emerged as the standout player in 2024 by securing the largest LATAM FinTech deal of the year—a $300 million Series E funding round. This funding was led by Allianz X, with participation from notable investors such as Stone Ridge Holdings, Tencent, and Goldman Sachs Asset Management.
These funds will support Ualá’s expansion plans across Argentina, Mexico, and Colombia. The company is leveraging proprietary AI-driven tools like UaláScore to enhance personalized financial services, including:
- Credit scoring
- Loan offerings
- Investment products
With a mission to drive financial inclusion, Ualá is poised to innovate further in both banking and insurance solutions, aiming to serve over eight million users across the region.
For more insights into the evolving landscape of FinTech in Latin America, visit our FinTech Updates page.
