Softbank backed Pismo raises $108M

Pismo is a technology company providing an all-in-one processing platform for banking, payments, and financial markets infrastructure.

Founded in 2016, the startup recently announced its $108 million raised in a Series B funding round co-led by SoftBank, e-commerce giant Amazon and Silicon Valley-based venture firm Accel. Falabella Ventures, PruVen and existing backers Redpoint eventures and Headline also participated in the financing, which brings Pismo’s total funding raised to $118 million.

Pismo has racked up a list of big-name customers, including Banco Itaú (one of Brazil’s largest banks), BTG, Cora, N26 and Falabella.

Pismo’s cloud-native core processing platform is aimed at giving banks, fintechs and other financial institutions “flexibility and agility,” said Ricardo Josua, CEO and Co-founder.

Source: LAVCATech Report 2021

Pismo prefers to be identified as a “techfin”: a purely tech company that provides services –platform as a service, or PaaS– focused on the financial sector. The term “techfin” was proposed by the founder of Alibaba, Jack Ma, in 2016. It refers to tech-based companies that have begun to develop financial products to complement their offering of products and services.

Some examples of companies that are increasingly becoming techfin are Google, Apple, Facebook, and Amazon in the United States, and MercadoLibre in Latin America. Its e-wallet is called MercadoPago and has added products related to savings and credit. (TechCrunch, Contxto). 

Buyouts Emerging Managers Survey 2021

The fifth annual Buyouts Emerging Manager Survey explores the latest evolutions in this complex and challenging part of the market.

Despite some inevitable risk aversion in the face of a global pandemic, a significant majority of respondents – 62 percent – believe that the risk/return profile for emerging managers is attractive relative to established firms. The rationale is simple. New managers are hungry, and they can’t afford to get this wrong. It is vital that early deals impress because a firm’s very survival depends on it. In addition, funds tend to be smaller, leading to an increased chance of producing outsized returns. “There is a very interesting dynamic at play,” says Scott Reed, co-head of private equity in the US at Aberdeen Standard Investments. (Buyouts Emerging Managers Report)

Source: Buyout Insider

CABEI's ESG agenda in Central America

Dante Mossi, Executive President, discusses CABEI’s ESG agenda in Central America latest edition of Canning House Conversations, Integra Groupe highlights:

  • The bank has an authorized capital of $7 billion dollar, boosting its capital base and lending capacity. So far is the largest provider of development aid to Central America for both public and private sector.
  • CABEI is a green and social bank. The institutions has been financing renewable energy in the region since way back. Was the first bank to finance eolic, solar and hydroelectric damps projects. Since Mossi’s arrival to the bank in 2018, the bank has signed a declaration in which they compromise not to finance any carbon generation, oil exploration, oil plants, etc… “We are very concern by climate change, we do care about the volatility of the environment and we know that by becoming sustainable we are helping our selves”, said Mossi.
Source: Valuates Reports
  • If Central America was considered a nation it would be 4 largest economy in Latin America, and that’s why ESG efforts matters in the region. The Bank approved a 5 year strategy that seek to measures the impact on the following variables: inclusion of women, impacts on jobs, impact on education, healths.

  • CABEI aims to promote new ways of transportation in Central America. Right now is financing a 1.5 billion dollar railway project in Costa Rica. Also, a cargo train in the Caribbean, a Pacific train in the works, and other ambitious project in, El Salvador and Dominican Republic.

  • Mossi considere the institution to be a social relevant bank to every country in the region, as they provide very quick reactions to their needs.

CABEI is the Honduras-based, 60 year-old multilateral development bank for Central America, which in our definition also includes the Dominican Republic and indeed Cuba. CABEI is capitalized by its member countries and raises significant funds for on-lending and the financing of projects through the international bond markets. In fact, CABEI is the highest rated bond-issuer in Latin America and has an impeccable reputation among global banks and their fixed-income investor client base. (Canning House & CABEI)

Embedded insurtech Sure raises megaround will expand to LatAm

  • The insurtech launched as a SaaS platform in 2016 to provide financial institutions and fintechs with digital insurance infrastructure.

  • With the fresh funding, Sure plans to expand in Europe, Latin America, and Asia, where it wants to open new offices. It will also enhance its solution to further streamline the process of embedding insurance and plans to triple its engineering workforce as a result.

  • The US market value of embedded insurance is expected to grow from $5 billion in 2020 to $70.7 billion in 2025, per Lightyear Capital.

  • Adding insurance services to their product suites helps fintechs diversify their revenue streams and earn predictable monthly fees.

Source: Willis Towers Watson, “Quarterly InsurTech Briefing Q2 2021,” July 29, 2021. Methodology:Thisdataisreportedquarterly by Willis Towers Watson.
  • And as fintech giants like neobank Revolut and robo-advisor Betterment—which Sure already counts among its clients—move into product lines like insurance, other fintechs will follow suit to remain competitive and offer users a one-stop shop for managing their finances.

  • Meanwhile, insurance incumbents are being threatened by insurtechs like Lemonade, which ended 2020 with more than 1 million customers, compounding incumbents’ need for more innovative insurance products—especially as customer satisfaction stagnates. Sure can help them quickly launch solutions like digital claims management to remain competitive.

(eMarketer)

Brazilians own cryptocurrencies worth $50 billion

The Central Bank of Brazil (BCB) revealed in a report on October 15 that Brazilians held total crypto assets worth $50 billion. Brazilians acquired $496 million in cryptocurrencies in August and have already acquired $4.27 billion so far in 2021.

According to the Brazilian monetary authority, May was the peak of the cryptocurrency acquisition, with $756 million in purchases. Since then the figure dropped to $695 million in June and $583 million in July, but was still higher than in February and March. At that time $386 million and $357 million were acquired, respectively, Brazilian media outlet Portal do Bitcoin reported.

Doing a mark-to-market estimation, total digital assets held by Brazilians would add up to nearly $50 billion, compared to $16 billion held in U.S. stocks, BCB’s monetary policy director, Bruno Serra, said on Friday.

In August, BCB’s president, Roberto Campos Neto, said that Brazilians held about $40 billion in cryptocurrencies. “It’s a very big business, it attracts the attention of regulators all over the world, it’s not just in Brazil,” he said.

Source: Obela.org, April 2021

Serra said that investors seek to diversify their wealth by investing in cryptocurrencies. he believes that crypto investments made abroad by Brazilians may increase threefold of amount invested in American shares. Many diversification channels have opened up and foreign exchange regulations are also being eased down in Brazil. However currently the country does not produce crypto assets due to high cost of energy although it acquires it or imporst it, Serra concluded. (Times of India, Coindesk)

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