SixPoint Spotlight
SixPoint Capital Management
FinTech for FinTech Lenders. ABF / hybrid capital for emerging market FinTech Lenders and Embedded Finance Platforms
Latin America
Macroeconomics updates
Brazil: In July 2024, Brazilian President Luiz Inácio Lula da Silva's approval rating reached 54%, the highest of the year, according to a Genial/Quaest poll. The increase reflects strong public support for his critique of the central bank's high interest rates, with 87% agreeing that the rates are too high. Despite his vocal stance, 64% were unaware of his comments. The Brazilian real's 10% decline against the dollar this year is not widely blamed on Lula, with only 34% attributing it to his remarks. The survey included 2,000 voters and has a margin of error of ±2%. For more details, read the full article source.
Chile: Fitch Ratings has affirmed Chile's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'A-' with a Stable Outlook. This rating reflects Chile's strong institutional framework, sound macroeconomic policies, and high per capita income, balanced against fiscal pressures and moderate growth prospects. The affirmation considers the country's resilience in managing economic challenges and maintaining financial stability. source
Financial Technology News
Mexico: Mexican fintech company Stori announced a $383 million investment to expand its operations in Mexico, enhancing its digital infrastructure and financial inclusion programs. This investment aligns with Mexico's Feminist Foreign Policy by promoting female empowerment economically and socially. Stori aims to increase financial services accessibility, especially for underbanked consumers, making it their first formal financial institution. For more details, you can read the full article on source.
Brazil: Brazil's fintech ecosystem is evolving with a shift from consumer-focused models to more B2B solutions, reflecting deeper integration into the country's financial systems. This transition includes embracing technologies like instant payments and digital currencies. Significant growth in the B2B fintech sector is marked by substantial investments, peaking in 2021 with over USD 2 billion across 174 deals. Despite a dip in 2023, 2024's early figures suggest a recovery, highlighting robust potential for further growth in this sector. For further information, you can read the full article on source.
Brazil: Noda has expanded its open banking network to Brazil, marking its first venture into the Latin American market. This expansion aims to enhance financial inclusion and offer seamless banking services by leveraging Brazil's regulatory environment that promotes open banking. The move is expected to provide Brazilian consumers and businesses with improved access to financial data and services, fostering innovation and competition within the financial sector. source
Private Credit News
Chile: Equita has launched its third credit vehicle following the successful investment completion of its second fund. This new vehicle aims to capitalize on the robust growth in the private debt sector and expand Equita’s portfolio in offering tailored financial solutions. The launch reflects a strategic effort to continue meeting the evolving needs of businesses requiring alternative financing solutions. source
Mexico: The ITFA Americas webinar on July 11, 2024, titled "Demystifying Private Credit in Mexico: The roles of SOFOMs in the local markets," will focus on the role of SOFOMs in Mexico's private credit sector. These financial entities are crucial in facilitating credit and supporting economic activities across various industries. The discussion will cover trends, opportunities, and challenges within the private credit landscape in Mexico. For more details, visit the source.
Brazil: Ailing hedge funds are increasingly turning to Brazil's burgeoning private credit market, which offers higher yields compared to traditional markets. This trend is driven by Brazil's economic stability and the demand for alternative financing options. The private credit sector in Brazil is growing rapidly, attracting significant attention from international investors seeking better returns amid global financial challenges. source
Fintech Fundraising News
Equity Raises
Brazil: Brazilian fintech company Celcoin has secured a $125 million investment led by Summit Partners, with participation from Innova Capital and financial technology executive John Coughlin. Founded in 2016, Celcoin provides Banking as a Service (BaaS) solutions, offering financial infrastructure for banks, fintechs, and enterprises. The investment will support Celcoin’s expansion and innovation efforts, enhancing their leadership in the BaaS and embedded finance market. The company has seen significant growth, with annual recurring revenue reaching $63 million in Q1 2024, a 140% increase from the previous year. Celcoin processes over 200 million Pix transactions monthly and has completed several strategic acquisitions since 2022. source
Asia
Macroeconomics updates:
Singapore: Investors are shifting to the Singapore Exchange for trading rupee futures following the Reserve Bank of India's (RBI) recent restrictions on these instruments. The RBI imposed these curbs to increase the volume of rupee derivatives traded within India, enhancing their control over the currency. The move has led to a significant decline in the trading volumes of rupee futures in local markets, prompting investors to look for more stable and regulated environments like Singapore to continue their trading activities. source
India: The Economic Times article discusses the Union Budget 2024 and the expectations for tax relief. Despite calls for lower GST rates and tax cuts from the middle class, it is unlikely that these demands will be met. The government is cautious about reducing tax revenues, which are crucial for funding public expenditure and development projects. Instead, the budget may focus on other areas to support economic growth and manage fiscal responsibilities. source Thailand: Thai banks are currently facing challenges in screening deals related to Myanmar due to a lack of capacity and resources. This issue has become particularly significant in light of increased scrutiny and regulatory requirements surrounding financial transactions with Myanmar, especially those that might be linked to the military regime. The situation underscores the need for enhanced due diligence capabilities among Thai financial institutions to comply with international standards and ensure the integrity of cross-border transactions. source
Financial Technology News
Thailand: Thailand's Siam Commercial Bank (SCB) has partnered with Sunline to upgrade its core banking system. This collaboration aims to enhance SCB’s financial transaction processing capabilities for deposits and loans, aligning with the bank’s digital transformation strategy. The upgrade is expected to improve operational efficiency and customer experience by leveraging Sunline's advanced banking technology solutions. source
Fintech Fundraising News
Equity Raises:
Singapore: In the first half of 2024, fintech funding in South-east Asia, led by Singapore, declined sharply by 25% to US$899 million from US$1.2 billion in the first half of 2023. Seed-stage funding dropped by 53% to US$42.5 million, and late-stage funding fell by 47% to US$338 million. Early-stage funding, however, increased by 17% to US$519 million. Singapore attracted the most funding with US$518 million, followed by Bangkok (US$140 million) and Indonesia (US$128 million). Investment tech saw a significant rise of 666%, while payments funding declined by 51%. Despite challenges, optimism for long-term growth in South-east Asia remains strong. source
Africa
Macroeconomics updates
Nigeria: Nigeria is facing significant economic challenges, including soaring prices since 2022 due to global supply chain issues, the Ukraine-Russia war, and local insecurity. This has been exacerbated by fuel subsidy removal and Naira devaluation, resulting in record-high inflation rates. Nigerian labour unions are advocating for a minimum wage increase from N30,000 to counteract declining purchasing power. However, experts caution about potential inflationary risks based on past economic history. Source
Kenya: Kenya's fiscal woes are primarily of its own making, exacerbated by past leaders' pursuit of easy financial gains. The country's debt nearly doubled from 41% to 78% of GDP within a decade, fueled by debt-financed investments like the controversial Standard Gauge Railway project. Despite this, economic growth has stagnated, and poverty levels remain high. Recent protests against proposed tax hikes highlight public discontent and resistance to further austerity measures. Now facing limited options, including potential debt restructuring and appeals for international support, Kenya grapples with finding a sustainable fiscal path forward amidst mounting challenges. Source
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Financial Technology News
Nigeria: The UNDP has unveiled the Timbuktoo Fintech Hub in Lagos, Nigeria, featuring 42 innovators. This initiative aims to foster innovation and support the growth of the fintech sector in Nigeria. The hub will provide a collaborative space for startups to develop and scale their solutions, contributing to the broader goal of enhancing financial inclusion and economic development in the region. source
Kenya: Kenyan startups have outperformed their Nigerian counterparts in raising funds during the first half of 2024. This shift in the African startup ecosystem saw Kenyan tech startups attract more investor capital, partly driven by M-Kopa's significant $51 million funding round. The increased funding highlights Kenya's rising prominence in the tech startup space, previously dominated by Nigeria. This trend indicates a growing interest in Kenya's innovative potential and favorable investment climate. source
Nigeria: Chinyere 'Chi' Nnadi, co-founder and CEO of Mara, has launched a new crypto company named Jara, replacing Mara Wallet following financial troubles. Mara, which initially raised $23 million from investors including Coinbase Ventures and Alameda Research, faced significant financial issues, including high expenses and a lack of revenue in 2022. With dwindling funds and unsuccessful fundraising efforts, Mara transitioned to Jara. Former executives claim the new venture was created to avoid liabilities associated with Mara. source
Private Credit News
Nigeria: Financial experts believe that private debt funds can effectively bridge financing gaps in Nigeria, particularly for mid-sized companies and those backed by private equity. These funds offer more suitable and cost-effective financing solutions compared to traditional lenders. An example is the FCMB-TLG Private Debt Fund, Nigeria’s first Naira-denominated private debt fund, which aims to raise capital from institutional investors and high net-worth individuals to support impact-oriented activities in key sectors such as agriculture, healthcare, and clean energy. This initiative is expected to provide essential capital and support economic growth and development in Nigeria. source
Fintech Fundraising News
Equity Raises
Tanzania: Tanzania-founded fintech Nala has raised $40 million to develop cross-border payment solutions for emerging markets. This funding aims to enhance financial inclusion by improving the efficiency and accessibility of international transactions, particularly in underserved regions. source
South Africa: South African agritech startup Pumpkn has raised investment from Renew Capital to address the funding gap in agriculture by facilitating financial support for agribusinesses. Pumpkn uses data to assess creditworthiness of small and medium-sized agricultural enterprises, making it easier for lenders to identify viable businesses and manage loan portfolios. This investment will help agribusinesses access necessary tools, machinery, and equipment to support their growth. source
Middle East
Macroeconomics updates
UAE: The UAE economy is experiencing exceptional performance in 2024, with projections of over 4% GDP growth driven by robust non-oil sectors like tourism, construction, manufacturing, and financial services. Strategic initiatives and favourable economic policies are enhancing investor confidence and global competitiveness. The economy's diversification efforts into renewable energy, technology, and real estate sectors are pivotal in sustaining this growth. source Israel: The Bank of Israel's Monetary Committee decided to keep the interest rate unchanged at 4.5% amidst ongoing geopolitical uncertainty and economic challenges due to prolonged war. While Israel's economy shows resilience, growth remains below pre-war levels. Inflation, though within target, is at the upper range, influenced by various factors including tax expectations and global oil prices. Economic activity, while recovering, faces supply constraints, particularly in the housing and construction sectors. Financial markets have seen volatility and a high risk premium. The Bank emphasizes fiscal responsibility and structural reforms to support economic stability and growth. source
Financial Technology News
Saudi Arabia: The Kingdom of Saudi Arabia is launching the inaugural 24 Fintech event in Riyadh from September 3-5, 2024, at the Riyadh Front Exhibition & Conference Centre. Organized by key financial authorities and co-organized by Fintech Saudi and Tahaluf, the event aims to bolster Riyadh's global fintech stature. It will feature an exhibition, summit, and satellite events, attracting 25,000 attendees, 300 exhibitors, 200 investors, and 80 fintech startups. With 200+ speakers and four stages, topics include governance, regulations, investment, and transforming financial services. Special zones like the Regulators’ Village and Venturescape will connect regulators, investors, and startups, enhancing collaboration and innovation in fin-tech. source
UAE: The UAE and Poland recently conducted their first Strategic Financial Dialogue in Warsaw, aiming to enhance bilateral cooperation across financial and economic sectors. Led by officials including Younis Haji Al Khoori from the UAE Ministry of Finance and Paweł Karbownik from Poland's Ministry of Finance, discussions focused on mutual interests such as treasury, fintech, renewable energy, and banking. The dialogue emphasized sharing expertise and exploring collaborative opportunities, highlighting the UAE's advancements in economic diversification and innovative financial policies. Future dialogues are anticipated to further strengthen ties and foster sustainable economic growth. source
Fintech Fundraising News
Equity Raises
Abu Dhabi: Abu Dhabi's Lunate is considering raising $5 billion to fund new acquisitions. The firm aims to capitalize on investment opportunities in the current market, leveraging the raised capital to hunt for deals and expand its portfolio. This move reflects Lunate's strategic growth plans and its confidence in identifying lucrative investments. Source
Israel: IVee, an Israeli startup, raised $7 million in a seed round led by TLV Partners. They specialize in AI platforms for non-profits, helping them raise funds and manage operations. During Israel's recent war, Vee provided free support, using AI to create digital content and raise about NIS 2 million for soldiers, evacuees, and hostages' families. The funding will expand their team and enhance their tools for non-profits. Source.
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