Cross-border funds platform dLocal is without doubt one of the most notable Latin American startups in current historical past — the corporate turned Uruguay’s first unicorn in 2020 and went public on the Nasdaq in 2021. DLocal’s founders had first launched AstroPay, one other digital funds platform that now has over 5 million customers.
Now, dLocal and AstroPay co-founder Sergio Fogel has teamed up with AstroPay’s former head of product, Gonzalo Strauss, to launch one other fintech out of Montevideo, Uruguay, referred to as Datanomik. Datanomik’s purpose is to attach monetary establishments throughout LatAm by its B2B open finance API, which gathers an organization’s banking data on one platform, Strauss advised TechCrunch.
Strauss dreamed up the thought for Datanomik as an answer to among the ache factors he had confronted working at AstroPay processing funds in rising markets.
Money remains to be the first fee methodology of alternative in rising markets, which posed challenges to fintech corporations like AstroPay in reconciling their funds to know their checking account balances and money circulate, based on Strauss.
Totally different banks all have their very own reporting interfaces and platforms that clients can entry, and plenty of don’t give clients APIs to have the ability to entry their very own information. When banks do present APIs to clients, they usually come in several codecs, from PDFs to CSVs, in order an organization with a number of financial institution accounts, it’s a tedious course of to log into every completely different account and collect data to be able to achieve a consolidated view of the corporate’s monetary place, he added.
“There was no straightforward means of interacting with our financial institution accounts. Mainly what we have been doing was manually getting into our personal financial institution [information] each 5 to 10 minutes to get all of transactions, to get our balances, to get all of our completely different financial institution accounts and reconcile the funds, get help and reconciliation, and extra … I made a decision this was not a scalable answer,” Strauss stated.
The open banking system appeared promising to Strauss as a possible answer that would assist corporations like AstroPay automate their processes and obtain extra streamlined banking data. Open banking seeks to bypass conventional monetary rails by permitting banks to present builders entry to their information by APIs. The know-how has taken off with startups like TrueLayer in the U.K., the place regulators have been early to greenlight open banking options, and Plaid within the U.S.
However when Strauss looked for an answer in LatAm that will match the wants of companies within the area, he got here up empty — so he determined to construct it himself. His work began out as an inside venture inside AstroPay, however after growing the thought, Strauss approached Fogel, his supervisor on the time, and pitched him on launching the venture as a standalone firm.
Fogel was impressed by Strauss’s pitch and ended up gauging curiosity from a few of his investor contacts, together with fintech-focused companion Angela Unusual at Andreessen Horowitz (a16z). Strauss’s enterprise didn’t have an official title but — all he had was the product itself and the pitch he had delivered to Fogel — however that was sufficient to pique the curiosity of Unusual and her staff.
Quick-forward three months to in the present day, and Datanomik, Strauss’s enterprise, introduced it has raised a $6 million seed spherical led by a16z. LatAm-focused enterprise companies Canary, Nazca and Latitud additionally participated within the spherical, alongside distinguished angel buyers from different tech startups and banks.
The financing marks a16z’s first funding in Uruguay, and one among its largest seed rounds in Latin America.
Datanomik has 5 clients in the present day, although Strauss didn’t title particular ones. The corporate says its purpose is to assist corporations like dLocal or corporate expense management platform Jeeves, which depend on analyzing corporations’ financial institution statements to do enterprise.
Though it’s headquartered in Uruguay, Strauss stated Datanomik’s fundamental goal market is Brazil, each due to its bigger inhabitants measurement and since the nation’s central financial institution and regulators are of their ultimate part of adopting an open banking framework. He added that Datanomik additionally has its sights set on Mexico and Colombia, that are each within the strategy of adopting an open banking system as effectively, although they’re in earlier phases than Brazil. Finally, Strauss hopes to develop the product throughout the LatAm area to companies in Uruguay, Peru, Argentina and different international locations that face comparable challenges.
“When you have an organization that has subsidiaries in, let’s say, Mexico, Brazil and Colombia, and the CFO needs to know, how a lot cash do I’ve in my financial institution accounts, by Datanomik it is possible for you to to, by one API, get a unified image of all of those accounts,” Strauss stated.