FinTech Kamino raises $6.1 million to help startups in Latin America
Kamino, a FinTech working on a product to help globally-structured startups, raised $6.1 million in a funding round, Bloomberg Linea reported on Tuesday (March 15).
Kamino’s goal is to help Latin American startups raise global funds. According to the report, the platform is a response to the traditional requirement that startups must have financial accounts outside of Brazil.
Several elements are added to the legal structure, including a financial services hub such as digital accounts and credit cards for the startup. As the report notes, these providers and services are aggregated, rather than the company creating a new path.
Thanks to this, the startup does not have to take each step individually, thanks to partnerships with law and accounting firms and financial institutions like Silicon Valley Bank.
Startups are “stuck” if they haven’t received funding in Brazil, so Kamino’s founders would have liked to change things by offering opportunities to obtain lines of credit until external capital arrives. Meanwhile, FinTech also helps with corporate, offshore and foreign exchange aspects.
PYMNTS recently wrote that the Central Bank of Brazil has implemented stricter regulations for FinTech companies, with new regulations based on company size and complexity and stricter standards for required capital.
See also: Brazil imposes stricter FinTech rules
The new rules are expected to come into force in January 2023 and should be fully implemented by January 2025.
The rules will extend the requirements currently applied to conglomerates of financial institutions and will now include financial conglomerates run by payment institutions. This will likely impact companies like Nubank, a credit card issuer, as well as payment company PagSeguro and digital wallet PicPay.
The circulation of capital will also not take into account assets that are not very valuable for the operation of payment institutions, so that companies can absorb unexpected losses.