Dealflow.la #61 - 'Swifties' and 'BTS Army' mobilize against Milei 🇦🇷, AMLO 🇲🇽 to spend $3.4 Billion to rebuild Acapulco after hurricane, & QI Tech 🇧🇷 raises a $203 Million Series B.

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Nov 08, 2023

Funding

Axify 🇲🇽 raised a $13 Million Series A led by Avalancha Ventures 🇲🇽 and Alpha Impact 8 🇺🇸 to keep building their payment gateway intended for prepaid installments with and without credit card. The company offers prepayment installment plans in different industries such as travel, e-commerce, insurance, hospitals, and health and beauty centers, enabling customers with a flexible payment system.

Finkargo 🇨🇴 raised a $20 Million Series A led by QED Investors 🇺🇸, with funding from Quona Capital 🇺🇸, ONEVC 🇧🇷, Nazca Ventures 🇨🇱, MAYA Capital 🇧🇷, Latitud 🇧🇷, and Flybridge 🇺🇸 to continue building their import financing platform designed to accelerate and finance international trade operations for SMEs in Latin America. The company's platform offers an automated credit scoring model, access to the capital required, and seamless logistics and financing processes, enabling small and medium-sized importers to boost sales and control logistics.

QI Tech 🇧🇷 raised a $203.7 Million Series B led by General Atlantic 🇺🇸 with funding from Across Capital 🇺🇸 to keep developing their banking-as-a-service platform intended to invest and manage credit assets and raise debt. The company offers debt issuance, slips issuance, credit analysis, and receivables lock, helping the fintech market by facilitating the entry and management of banking systems.

Sociopolitical News

🇦🇷 Argentina

Javier Milei's far-right campaign in Argentina faces unexpected resistance from passionate fans of pop icon Taylor Swift and K-pop group BTS. These 'Swifties' and the 'BTS Army' are mobilizing against him, citing concerns over his conservative social policies and controversial remarks. Despite his popularity among the youth, these fan groups could influence the tight election outcome. (New York Times)
In Argentina's Cordoba province, intense wildfires fueled by a heatwave have triggered evacuations. A vast force of 960 firefighters, aided by aircraft, tackles the flames, with rain hoped to assist their efforts. (AP)
In the upcoming presidential runoff in Argentina, libertarian Javier Milei narrowly leads over Economy Minister Sergio Massa, with polls showing 48.5% favoring Milei against Massa's 44.7%. The pollster, with prior accurate predictions, indicates a close race despite economic challenges and high inflation under the current government. The candidates vie for undecided voters ahead of the November 19 election. (Bloomberg)
Sergio Massa's unexpected lead in Argentina's presidential race could be favorable for China, as analysts suggest he's likely to maintain the robust bilateral relations. His potential victory heralds the persistence of Argentina's current economic trajectory with Beijing, heightening China's strategic position in South America without the anticipated critical examination of their expanding financial ties. (VOA)

🇧🇴 Bolivia

Bolivia appoints Antonio Carlos Zago as head coach, aiming to revitalize their World Cup qualifying campaign after a disappointing start with no points from four games. Zago, an ex-Roma defender and Bolivian championship-winning coach, faces immediate challenges with upcoming matches against Peru and Uruguay. (AP)

🇧🇷 Brazil

President Lula da Silva has deployed the Brazilian armed forces to key airports, ports, and borders to combat organized crime, following retaliatory attacks by gangs in Rio de Janeiro. The militarization includes 3,600 service members focusing on major transport hubs and is part of a broader security strategy, amidst increased pressure on the government to manage public safety effectively. (AP)
Ahead of the Copa Libertadores final in Rio, tensions surged after a violent clash between fans. Argentines flooded the city, resulting in brawls on Copacabana beach, leading to arrests and a heavy police response. Security meetings occurred amidst criticism of police actions, with a significant presence planned for match day. (AP)
Brazil faces port congestion with over 70 ships waiting to load sugar, as global dependence on its supply increases amidst a severe bottleneck, exacerbated by droughts and port fires. (Bloomberg)
Erratic weather, including unusual dryness in Mato Grosso and excessive rainfall in Parana, threatens Brazil's soy yield despite a strong start to the season, with El Nino's influence adding uncertainty. (Reuters)
Brazil's government has assured FIFA of its commitment to bid for the 2027 Women's World Cup, with President Lula providing necessary guarantees, marking a push for women's soccer. (ABC)
General Motors has reversed its decision to lay off 1,245 workers at Brazilian factories, following a labor court ruling and a 13-day strike, as per the Sindmetal union. (Reuters)

🇨🇱 Chile

Chilean President Gabriel Boric, in discussions with U.S. President Joe Biden, criticizes Israel's response in Gaza as disproportionate, voicing concerns over international law violations. (Reuters)
Amidst political strife and a national vote on a new constitution, Chilean President Gabriel Boric finds solace in the Pan American Games, a welcome distraction from rising crime and political polarization, while also giving him an opportunity for positive exposure during a faltering presidency. (ABC)

🇨🇴 Colombia

Colombia, under President Petro, is expediting the salvage of the San Jose galleon's treasure, worth up to $20 billion, despite a US firm's $10 billion lawsuit for salvage rights. Petro aims for recovery by 2026, with the nation focused on displaying the centuries-old bounty in a museum. (Bloomberg)
Colombian President Gustavo Petro faces political backlash following disappointing local and regional election results. Only a year after his landmark victory, Petro's reform efforts have stalled, and a finance scandal has emerged. His Pacto Historico coalition won just two of 32 governorships, signaling voter disillusionment and challenging times ahead for his presidency. (Al Jazeera)

🇨🇷 Costa Rica

Costa Rica's reputation as a beacon of success in Latin America is waning as citizens protest against deteriorating state services. Thousands marched in San José, demanding that President Rodrigo Chaves bolster funding for public services, education, and the Caja, the healthcare and pension provider, amidst rising violent crime and youth gang involvement. (The Economist)

🇸🇻 El Salvador

El Salvador's Congress has revoked a controversial law penalizing the publication of gang-related content, as government officials announce a triumph in the anti-gang campaign. President Nayib Bukele's measures have significantly reduced crime but faced criticism for infringing on journalistic freedom and due process, leading to the world's highest incarceration rate. (Reuters)
El Salvador's Supreme Electoral Tribunal has controversially authorized President Nayib Bukele's reelection bid for 2024, despite constitutional prohibitions, following his popular anti-gang policies and substantial reduction in crime rates. (ABC)

🇬🇹 Guatemala

Guatemala's Citizen Registry has suspended President-elect Bernardo Arévalo's Seed Movement party following allegations of irregularities, a move criticized as politically motivated interference with the democratic transition by both national and international observers. (ABC)

🇭🇳 Honduras

Honduran lawmakers from President Xiomara Castro's party elected an interim attorney general, Johel Zelaya, in a committee vote dominated by her allies, prompting opposition claims of an unconstitutional move towards dictatorship, reminiscent of controversial regimes in Venezuela and Nicaragua. (Reuters/US News)

🇲🇽 Mexico

Hurricane Otis, a Category 5 storm, devastated Acapulco, Mexico, leaving at least 58 people missing, including 11 Americans, with a confirmed death toll of 46. Amidst destruction and skepticism over official figures, President López Obrador announced a multi-billion dollar reconstruction plan while downplaying the catastrophe's extent. (ABC)
Mexico has allocated $3.4 billion for Acapulco's reconstruction post-Hurricane Otis, with provisions for tax breaks, immediate welfare payments, and financial aid for affected families, with President López Obrador open to increasing funds if needed. (NBC)
In Puebla, Mexico, gunmen on motorcycles killed five individuals seemingly linked to fuel theft, amid a shootout involving gangs known for illegal fuel siphoning from pipelines. (ABC)
Nine Mexican cartel members were indicted in Adams County for smuggling fentanyl, meth, and cocaine into Colorado and neighboring states, with numerous seizures made during "Operation Dress for Less." (CBS)
Police in Sonora, Mexico, were ambushed, leading to a manhunt in the mountains as violent clashes with local gangs intensified, threatening the region's Day of the Dead festivities. Multiple shootouts have prompted towns to cancel or postpone celebrations. (ABC)

🇺🇸 Miami

Amazon founder Jeff Bezos is relocating from Seattle to Miami, seeking proximity to family and his aerospace company, Blue Origin. Bezos, who started Amazon in a Seattle garage in 1994, expressed emotional ties to the city in his announcement. (CNBC)

🇳🇮 Nicaragua

Nicaragua pardoned and repatriated 21 Hondurans, including MS-13 gang leader David Elias Campbell Licona, known as "El Viejo Dan". Upon arrival, Honduran police detained him for laundering and gang-related charges dating back to 2016. (Reuters)

🇵🇦 Panama

Panama's congress amended a bill to preserve a contentious contract with Canadian mining firm First Quantum, amid protests. The moratorium on new mining now awaits a final vote and the President's approval, avoiding potential legal liabilities while the nation debates the contract's constitutionality and a possible public referendum. (ABC)

🇵🇪 Peru

Japanese Princess Kako visited Peru to honor the 150th anniversary of diplomatic ties, leading celebratory events and visiting significant cultural sites, including the ancient Incan capital of Cuzco and the sacred Qoricancha temple. Her six-day tour also includes a stop at a school for the hearing-impaired, reflecting her engagement with the deaf community in Japan. (ABC)

🇺🇾 Uruguay

Uruguayan Foreign Minister Francisco Bustillo resigned amid allegations of attempting to obstruct an investigation into a drug trafficker's passport issuance, igniting a scandal for President Luis Lacalle Pou. Leaked calls indicated Bustillo's involvement in evidence concealment. Despite multiple government scandals, Lacalle Pou's approval ratings remain stable ahead of the 2024 elections. (Bloomberg)

🇻🇪 Venezuela

Venezuela is engaging oilfield companies to increase oil production following the US sanction relief, aiming to revive its oil output, with PDVSA seeking partnerships and equipment for its ambitious recovery plans. (Reuters)
JPMorgan's index unit has initiated a three-month observation of Venezuelan and PDVSA bonds for potential reintegration into its EMBI index, following the US lifting the ban on secondary-market trading, amidst Venezuela's political agreements towards 2024 elections. (Reuters)
Javier La Rosa has been appointed to oversee Chevron’s Latin America operations amid the company’s expansion, including the Hess Corp acquisition and increased activities in Venezuela following eased sanctions. La Rosa succeeds the retiring Eric Dunning starting in April. (Bloomberg)

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