Fundraising for Latam fintechs likely to be under pressure

Fundraising for Latam fintechs likely to be under pressure

3/12/2021 11:10:00 PM

Fundraising for Latam fintechs likely to be under pressure

Fundraising is likely to become momentarily tougher for financial startups in Latin America as the prospect of higher interest rates has reduced investor appetite for riskier assets, chief financial officers told the Reuters Next conference.Panelists said investors will ask for more indications of profita

Fundraising is likely to become momentarily tougher for financial startups in Latin America as the prospect of higher interest rates has reduced investor appetite for riskier assets, chief financial officers told the Reuters Next conference.Panelists said investors will ask for more indications of profitability before pouring money into fintechs in the region.

Is It Real? When Everyone Looked At The Photo They Worried

"There will be larger scrutiny around the projects, like around the prospects of what's the real business; more insights around unit economics, around a path to profitability; around how we actually run the business," said Mariano Carranza, chief financial officer at Mexican payments fintech Clip.

Latino startups, mainly fintechs, raised US$14.8 billion in new money in the first nine months of this year, a jump of 174per cent since last year, according to CBInsights.However, signs that investors are more cautious have emerged recently. Earlier this week, Nubank, Latin America's biggest fintech, was forced to trim its planned valuation in an initial public offering by 20per cent to roughly US$40 billion after facing weak demand from investors. headtopics.com

"The outlook for the growth of these companies in the region continues to be very attractive, despite high interest rates. So I believe that many investors might end up being more selective. Some startups will have to deliver more prior to having access to such a large amount of debt," said Helena Caldeira, chief financial officer at Inter, a Brazilian digital bank backed by SoftBank Group Corp.

S'pore TikToker apologises for posting video of man in gym staring in her direction & claiming he was ogling her

Still, she believes this should not be a long-term trend, as financial inclusion in the region is low.Caldeira said that the 5.5 billion reais (US$971.94 million) Inter raised in a share offering and client deposits will help it navigate a potentially tougher period for capital raising.

Clip also raised US$250 million with SoftBank Latin America Fund and Viking Global Investors LP in July.(Reporting by Carolina Mandl in Sao Paulo and Katanga Johnson in Washington; Editing by Cynthia Osterman)

Read more: CNA »

Plane hit by train after crashing on train tracks in California

LOS ANGELES — Police in Los Angeles, California, pulled the pilot from a crash-landed Cessna seconds before the aircraft was hit by a train on Sunday (Jan 9), sending debris flying in all directions.

Yellen says cutting some tariffs on Chinese goods could ease price pressuresWASHINGTON : U.S. Treasury Secretary Janet Yellen said on Thursday that lowering Trump-era tariffs on imported goods from China through a revived exclusion process could help ease some inflationary pressures, but would be no 'game-changer.'Yellen told the Reuters Next conference that she thinks the tariff

Global stocks rally set to moderate next year, correction likely - Reuters pollBENGALURU : Global stocks will shake off recent weakness and rise over the next 12 months but at a more tempered pace than this year's rally, found a Reuters poll of equity analysts who also said a correction was likely in the next six months.Uncertainty around the virulence of the Omicron coronavirus var

US Supreme Court appears likely to roll back abortion rightsWASHINGTON: The conservative-dominated Supreme Court appeared poised on Wednesday (Dec 1) to roll back abortion rights in the United States by upholding a law in the southern state of Mississippi that would ban the procedure after 15 weeks. Hundreds of demonstrators gathered outside the imposing court in W

Reinfections three times more likely with Omicron: South African researchJohannesburg — A preliminary study by South African scientists published Thursday (Dec 2) suggests the Omicron variant is three times more likely to cause reinfections compared to the Delta or Beta strains. Well done…so maybe we should also multiple 3x the numbers of jabs to 9…jab every 6 months until one reaches 9 jabs?

Reinfections three times more likely with Omicron: S. African researchA preliminary study by South African scientists published Thursday suggests the Omicron variant is three times more likely to cause reinfections compared to the Delta or Beta strains.

Taliban leader decrees Afghan women's rights must be 'enforced'The Taliban issued a decree Friday in the name of their supreme leader instructing Afghan ministries 'to take serious action' on women's rights, but failed to mention girls' access to schools. 1st dae as garhman tell d whole wide woprld ..women wud b treated with fairness...nuw same women still faced umployment waitin 2 b STONED...& people were wundurin Y? d same women tried 2 flee afganistan