Funds such as Soma Capital, GBV, Techstars, Devlabs, Ripio Ventures, and Platanus Ventures also joined Arch's investment round.
Structural digitization gaps in Latin America's business sector will likely lead to long-term value for fintechs providing the necessary infrastructure, according to U.S. growth equity firm Riverwood Capital.
The report found that the traditional playbook of developing branches and building relationships may count "for little in a world where a mobile phone is the principal' real estate', and word-of-mouth – often via social media – becomes the most powerful form of validation."
Despite the sharp drop in value seen in the past weeks, financial technology players that have drawn millions to their wallets are now doubling down their bets on crypto.
Venture capital investments into LatAm fintech startups dropped further in the third quarter of the year, following a sharp reversal in global markets that drove investors away from assets generally perceived as risky.
Nubank is doubling its bets in crypto technology. The neobank announced plans to develop its virtual token to drive a loyalty program.
Nubank announced it had expanded its customer base sixfold over the past year, reaching a total of 2.7 million customers from 0.4 million.
Latam fintechs expected to grow into lending in 2024, as a more benign economic environment favors greater risk-taking.
Investments into Latin American fintechs are expected to pick up in 2024 amid rate cuts in the United States.
Latam fintech associations made a significant stride last week by publishing a document proposing joint regulations for open finance.