Latin America ended January with 173 dealmaking operations with a disclosed value of US$2.38bn, according to monthly tracking by TTR Data.

Those figures were down 23% and 51% year-on-year, respectively. The figures refer to venture capital, private equity, asset acquisitions and M&A operations.

Brazil led the way with 102 deals, down 28%, while value reached US$924mn for 37 transactions with a disclosed consideration a 62% drop, said TTR. Chile ranked second with 25 deals (-7%) and US$758mn (-60%). 

Argentina was next with 15 deals (+36%), and US$186mn (+184%), while Colombia saw 14 deals (-33%) and a value of US$25mn (-96%).

Closing the list was Peru with 12 deals (-20%) and US$102mn (+172%), and Mexico, with nine deals in January (-55%) and US$560mn in value (+254%), considering three deals with disclosed amounts. 

VCs on the rise, says Lavca

Specifically with respect to VCs, the region recorded an increase in these transactions last year, leading to a rebound after a weak 2023, said Lavca.

According to the association, VC investments in Latin America stabilized through 2024 after a period of consolidation, reaching US$4.5bn across 751 deals, up from US$4.2bn in 2023, when there were 826 deals. 

The quarterly breakdown shows that 4Q24 was the best performing quarter, with US$1.7bn, since at least 2Q22.

Brazil breakdown

In Brazil, VC operations, generally in startups, ended the year with 9bn reais (US$1.6bn) in investments, mostly in startups, for a 17% increase compared with the previous year. 

Figures are from the Brazilian Association of Private Equity and Venture Capital (ABVCAP), compiled  in partnership with TTR.

The number of rounds fell by 46%, sliding from 228 in 2023 to 123 last year. 

According to Abvcap, VC growth last year was driven mainly by activity in 4Q24, with strong deals announced from October onwards. Investments via Corporate Venture Capital (CVCs) funds also performed well in 2024, while private equity saw another year of decline.

Argentina’s N5 raises US$20mn for banking AI

Argentine fintech N5 secured US$20mn in a Series A round to expand its AI agents solution to financial institutions and banks.

The investment was led by Alexia Ventures, a Brazilian fund focused on AI, and by the Scale-Up Ventures II fund from Endeavor.

N5 developed an end-to-end platform that integrates all essential software for the operation of financial institutions, such as CRMs, BPMs and omnichannel. N5 clients include Itaú, Mastercard and Santander.

Proceeds from the round will go toward AI enhancements in the platform and expansion in LatAm.

Public funding to Brazil's Unifique

Brazilian internet service provider Unifique closed a 40mn-real credit facility with development bank BNDES to revamp service provision in areas affected by heavy rains in 2024 in the state of Rio Grande do Sul.

Resources come from the fund for universalization of telecom services (Fust), which is managed by BNDES and must be fully used within 12 months. Unifique's repayment term is 48 months.

Insurtech Azos raises Series B

Brazil's Insurtech Azos, raised US$30.5mn in a series B round led by investment fund Lightrock. 

Kaszek, Prosus, Maya Capital and Propel funds, which are already shareholders in the company, also participated in the round. 

Launched in April 2021, Azos is focused on AI-based life insurance provision.

Source: BNamericas