Introduction
Amidst volatile markets and geopolitical tensions, investors in Mexico have adopted a cautious stance in both venture capital and mergers & acquisitions. However, the fintech sector stands out as an exception due to its promising opportunities and global potential, according to the KPMG Venture Pulse Report Americas Q2 2025.
Venture Capital Activity in Mexico
In Q2 2025, venture capital activity in Mexico was moderate but significant. The most notable deal was Kavak, a used vehicle trading platform, raising $127 million. Despite this, KPMG’s report highlights that fintech remains the most attractive sector for investors, despite judicial reform uncertainty, political volatility, and trade tensions with the US.
Fintech’s Global Appeal
Ignacio García de Presno, KPMG Mexico’s lead partner for strategy and deal advisory, stated: “The landscape in Mexico and the region shows signs of resilience and dynamism, particularly in sectors like fintech and AI. This suggests a global shift in venture capital, with a clear trend towards more strategic and focused investments.”
Fintech’s allure extends beyond Mexico. In the first half of 2025, notable funding rounds were achieved by fintech companies in the Americas: Plaid (US) raised $575 million, Clara (Brazil) secured $80 million for corporate expense management, and Keep (Canada) obtained $76 million for small business financing.
Containment of Venture Capital Investments in Mexico
KPMG warns that venture capital investments in Mexico will likely remain contained until at least mid-Q3 2025, pending the effects of the August judicial reform. Attention is also on Mexico’s National Bank for potential interest rate cuts to curb peso appreciation.
The report predicts that the fintech sector will continue to be the most attractive for venture capital investment in Latin America, given the significant opportunities perceived in this sector.
Fintech Regains Momentum with Cryptocurrencies
Venture capital investment in the fintech sector rebounded in Q2 2025, driven by increased confidence from investors and companies regarding the future regulatory framework, especially in the US. The Securities and Exchange Commission (SEC) withdrew several cryptocurrency and fintech-related investigations, boosting sector optimism.
The quarter saw successful IPOs that further enhanced the sector’s appeal. In May, eToro, a US-based crypto investment platform, went public on Nasdaq with a $620 million offering. A month later, Circle, issuer of the USDC stablecoin, made a stellar NYSE debut by raising $1.1 billion and seeing a 168% increase on its first trading day.
Chime, a neobank, raised $864 million in its Nasdaq IPO shortly after. KPMG’s report suggests that these successful listings may encourage established fintech companies to follow suit, taking advantage of market opportunities and gaining more influence in sector regulatory discussions.
Key Questions and Answers
- What is the current state of venture capital investments in Mexico? Despite economic uncertainty, the fintech sector remains the most attractive for investors in Mexico.
- Which fintech companies have recently secured significant funding? Notable funding rounds were achieved by Plaid (US), Clara (Brazil), and Keep (Canada) in H1 2025.
- Why is fintech regaining momentum? The sector’s optimism stems from a more favorable future regulatory framework, particularly in the US, and successful IPOs of fintech companies.
- What does KPMG predict for the future of venture capital investments in Latin America? The fintech sector is expected to remain the most attractive for venture capital investment in Latin America.
