We’re excited to announce that our portfolio company OmniLatam, cofounded by Diego Caicedo and Andres Abumohor, was acquired by Greensill Capital, a London-based fintech startup backed by General Atlantic and Softbank.
This acquisition will further Omni’s mission of helping solve working capital needs of the region’s SMEs. From the Bloomberg article:
“We realized Latin America requires very special skills, and yet at the same time the region has a very significant working-capital gap that we estimate to be on the order of $750 billion,” Greensill founder and Chief Executive Officer Lex Greensill said in an interview. “So we found a company, a team, a technology that is a perfect fit considering the values and the approach of the Greensill organization.”
Omni, founded in 2018 in Bogota, has provided about $300 million in digital working-capital products to small and midsize businesses that supply large companies in Chile and Colombia. The firm collects data such as invoices and tax forms to help make credit decisions based on the prospective borrower’s clients, sales and employees.
“We don’t ask for the company’s financial statements, which will only tell you about the past,” Omni CEO Diego Caicedo said. “We’re seeing the movie in real time here,” he said, adding that “small companies’ situations change very fast, and in a world in a pandemic crisis like today, it changes even faster.”
Magma has been an investor since late 2016 when it was called Portal Finance, which won our Latin America-wide fintech competition and received a pre-seed investment, and we continued to follow on in every round until the acquisition. We’re excited to see how Diego and Andres continue on their mission to help SMEs in Latin America continue to grow, while helping SME owners build wealth and create jobs in Latin America, with their new partner Greensill Capital.
Houm is a platform for property owners to advertise their properties through an online marketplace. Potential tenants can book a virtual tour of a property through the platform, and after deciding on a place, can sign a lease without the need of a co-signer. The proptech also uses AI algorithms to recommend an optimal rent value to owners for their properties.
The startup plans to expand further into the Chilean market, hire additional staff, and improve the platform’s technology with the most recent round of funding.
Seguros Arca is a leading insurtech platform from Mexico City that allows users to find, compare, purchase, and manage insurance policies online. Magma Partners recently invested along with Leap Global Partners and Grupo Peña Verde.
Arca users only need their vehicle brand name, model, and their postal code to get a quote in less than 30 seconds. Consumers can compare quotes from different insurance companies without registering and without having to call a live agent.
“We’re excited to support Seguros Arca on their mission to help the uninsured with their digital solutions. We believe the founders, who have extensive experience in the industry, will transform the insurance market in Mexico, and eventually, in Latin America in general,” said Nathan Lustig, Managing Partner at Magma Partners.
Seguros Arca is bringing the digital revolution to the insurance sector with its solutions that use technology to help streamline access to insurance.
Sekure is a Colombian insurtech platform that helps people choose an insurance plan that best suits their needs. Sekure collects clients’ data, then consults with the top insurance companies in the market, and offers clients the best insurance options that match their lifestyles.
The platform allows users to search and compare insurance quotes for vehicles, pets, and homes in one place. Once users purchase their insurance, they can manage their products with Sekure’s mobile app.
The insurtech startup was founded in June 2018 by Rodrigo Alfonso and currently operates in Colombia. Sekure recently raised capital from Magma Partners, forming part of its Fund II portfolio companies.
Treble.ai is a customer support platform that lets companies get feedback from users through SMS and WhatsApp using automated conversations that are redirected to a customer support agent when needed.
Magma Partners recently invested in Treble.ai after the startup participated in the Summer 2019 cohort at Y Combinator.
Treble.ai currently operates in Colombia and has logistics unicorn Rappi as one of their largest customers.
Q3 was headlined by 7 investments, including 2 follow ons into existing portfolio companies. We did our first investment in Brazil, deepened investments in Mexico and other regions in Latin America.
Latin American tech is on fire in 2019, headlined by Softbank’s continued disruption of the market, having invested in 16 deals in the past 16 weeks. This is pushing big funds like Goldman Sachs, Credit Suisse, Riverwood, Temasek, a16z, Sequoia and more to invest more quickly in order to get into deals. You can read more about these headline deals in our new monthly series in TechCrunch, written by Magma’s Sophia Wood.
InEvent – Brazil/USA. CRM for Corporate Events. Our first investment in Brazil and is a SaaS with a Brazilian tech team targeting the US market.
MiPos – Ecuador/Mexico. Point of Sale system for restaurants in Latin America. With the proliferation of Rappi, Uber Eats, Domicilios, and other online ordering systems, restaurants have a tablet for each service. MiPos integrates it all.
Treble.ai – Colombia/USA. Mobile first customer service for ecommerce.
Marqii – US/Chile. SaaS for US-based restaurants to automatically update their menus and pricing on all online ordering websites.
Magma Events 2019
Lendit – Dec 4-5, Miami. The premier fintech conference in the US gets a Latin American edition.
WeXchange – Nov 14-16, Asunción. The IDB is leading a conference for women entrepreneurs.
Pedro Pablo travels to Israel to meet entrepreneurs and investors
Our Partner, Pedro Pablo, recently traveled to Tel Aviv to meet local stakeholders and get to know the thriving local ecosystem.
Nathan Lustig attends YCombinator Demo Day
Our Managing Partner, Nate, traveled to San Francisco last month to participate in YCombinator’s Summer 2019 Demo Day, where he met Latin American companies. Every year more Latin American startups participate in this prestigious program (16 this batch!). We have previously invested 10 YC companies, including in Ubits and BrainHi who also participated in previous batches.
JT and Sophia were mentors at Village Capital’s Finance Forward program in Santiago
Our Principals, JT and Sophia, were invited to act as mentors for fintech startups from across Latin America in a workshop on Investment Readiness for Village Capital’s first Finance Forward program. The program offers workshops in four Latin American cities, as well as opportunities for financing at the end of the program for the top startups. Sophia and JT met with several startups from Mexico, Brazil, Chile, and Colombia during the event to help them prepare to meet with investors.
OmniBnk opens office in Mexico
OmniBnk continues to be one of our top-performing companies, expanding into the Mexican market with our Venture Partner, Eugenio Perea, as Country Manager. They announced their expansion into the Colombian market in May 2019 and continued to grow in Q3 this year.
Magma Google Case Study + Ciara Middleton’s Lessons Learned
We published our case study on how we use Google Cloud to facilitate remote work at Magma Partners and how we collaborate with our startups across borders. We depend on GSuite for everything from investment documents to pitch decks and we cover all this work in the case study.
We also published an article written by our intern, Ciara Middleton, who joined us in June/July 2019 to help out the content team. She listened to over 20 podcast episodes and turned the lessons she learned into a blog post to help entrepreneurs learn from the experiences of others. Read more about Ciara’s tips here.
Crossing Borders Podcast Highlights
We had a very busy few months on the podcast – thanks to Angel and Josefina for working so hard on making this program possible. Here were a few of the guests we had this quarter:
New Articles on Nathan Lustig’s Blog
We published a few more deep dives on Latin American industries and trends this quarter.
If you want to get in touch with Magma Partners, you can reach us here. Thanks for reading!
Nuvocargo is a freight forwarding platform that manages cargo deliveries across the US-Mexico border, for a seamless experience for users on both ends. Nuvocargo handles customs and provides tracking services to make the process of moving cargo between Mexico and the USA less painful and more efficient.
Founder Deepak Chhungani started Nuvocargo in the US in 2019, leaving his native Ecuador to join Y Combinator in Winter 2019.
Nuvocargo allows customers greater visibility and better data on the freight supply chain, allowing customers to track their shipments via the cloud-based dashboard. All processes are managed through the online platform, including customs clearance, tariffs, and shipment method.
Nuvocargo is the fifth Ecuadorian company in the Magma Partners portfolio. The company is also backed by leading investors from Silicon Valley, USA, and Latin America, such as the founders of Rappi and Cabify.
InEvent is an all-in-one event management platform for corporations that aims to boost event engagement for users. InEvent compiles all tools and data on attendees in a single digital platform, creating an improved and personalized user experience for event attendees and organizers.
InEvent provides event-specific apps, check-ins, targeted push notifications, and analytics on event attendees, which help boost company sales and attendee engagement at events. The team once managed a 40,000-person event at a stadium in Brazil where over 97% of attendees downloaded and used their app during the event.
InEvent was founded in 2015 by Mauricio Giordano, Pedro Góes, Vinicius Neris. The company started in Brazil and has since expanded into the US market, where they are selling from Atlanta, Georgia, reaching several big corporate clients within their first year of operations.
Event management is one of the fastest-growing industries worldwide as more companies seek to boost client engagement. With only three years in the industry, InEvent has worked with more than 395 companies including some of the largest brands in the world, such as Honda and Amazon, as well as large Latin American companies like Itaú bank.
MiPOS is a payments and finance management system for restaurants to help them integrate with delivery apps without complex programming. With MiPOS, restaurants can manage their online menus, orders, deliveries, and payments through software on a tablet. MiPOS also offers a mobile POS system for restaurants to help them accept card payments from consumers in Ecuador.
The company aims to help restaurants facilitate online orders for food delivery and streamline payments. Using an API, MiPOS provides an integrated platform for restaurants that is able to connect to the restaurant inventory and sales records stored in the cloud or in an exported Excel document.
MiPOS was founded by Orlando Espinoza and Roberto Yoncon in 2019 and is based in Quito, Ecuador and went through Y Combinator.
The company has already integrated with UberEats, Rappi, and Domicilios as it enters the already booming food delivery market in Latin America.
We are excited to watch MiPOS grow over the next year to help Ecuadorian restaurants accept payments and delivery options more easily! MiPOS is our fourth Ecuadorian startup as we continue to drive seed-stage investment in the country.
When we invest in a startup, we’re in it for the long haul. It’s seven years on average, but we’re hoping to create lifelong relationships with the people we support, even if the startup that we’re supporting you on does not work out.
One of the biggest predictors of success that we’ve seen so far is working with founders that share our values. When evaluating an investment, we spend time sharing our values and listening to the values that the founders and their team bring to the table.
We’ve decided to share our core values, along with some of the mental models that we and the best entrepreneurs in our portfolio have used to be successful. We didn’t come up with most of these, but these are the ones that have worked for us.Continue Reading