Balam

Sponsored by

This is Runway, a weekly newsletter covering Latin America’s vibrant startups shaping tomorrow’s business landscape. If you haven’t subscribed, do so to get this content directly in your inbox:

Last year, Mexico's remittances grew to over $63 billion, with 96% originating from the US and 99% being transferred electronically.

This marks a decade of growth fueled by new financial technologies that have helped shape cross-border financial flows.

Let's dive in.

Explain it like I'm five

Balam offers a WhatsApp chatbot that enables users to send money across Latin American countries.

• They use blockchain technology to make transactions faster.

• Recipients receive their money in the local currency.

• The costs of transactions are cheaper than those of traditional institutions.

Why is it interesting? The Hispanic community in the US continues to grow, increasing from 50.5 million in 2010 to over 63.6 million today.

Why are we watching? Balam's chatbot is integrated with WhatsApp, the primary messaging app for over 78 million Mexicans, making it easier to gain traction and adoption.

The ABCs

• Industries: Fintech, Crypto, Remittances

• Headquarters: Mexico City

• Year Operations Started: 2023

• Team Size: 6

• Raised: $500,000 USD Pre-Seed

• Investors: Angel Investors, Friends & Family

• Business Model: Transaction fees (1.5-3%).

Background check

What we like:

• Familiarity: By engaging with the target audience on their preferred platforms, Balam can efficiently acquire customers and rapidly expand to meet their needs.

• Price: Balam offers an affordable and convenient alternative to banks and financial institutions while maintaining a personalized experience.

• Time: Sending money with Balam is much cheaper than traditional methods, significantly reducing the time needed without waiting in long lines at banks.

Roadblocks:

• Digital Currencies: Balam uses crypto to make its transfers quicker and cheaper. They claim to be up to 50 times faster than traditional methods, but there are still many risks in the digital currency space.

• Players: The remittance market is valued at $737 billion worldwide and $156 billion in Latin America, attracting various players across regions.

• Security: Even with lower prices, people still want security from banks, so even if prices are lower on other platforms, they are still willing to pay extra for banks’ security and reliance.

The Architects

• Jose Alberto Diaz, Co-Founder & CEO.

• Alejandro Cardini, Co-Founder & CTO.

• Carlos Cardini, Co-Founder & COO.

Merchant of the Week

5-Day Challenge For FREE

🔥The #1 Hottest Funnel Building Challenge Is FREE!

Join Our 5-Day “Your First Funnel Challenge”...

Inside, Daymond John & Russell Brunson, and 20+ other entrepreneurs will mentor you to launch your first business idea into the world with a funnel.

If you’ve ever experienced:

❌ Overwhelmed with feelings of uncertainty

❌ Questioning if your business idea is even “good enough”

❌ Feeling stuck in life and career

❌ Have the drive, but don’t know where to start…

The ‘Your First Funnel Challenge’ will walk you through step-by-step on how to “bootstrap” your idea and launch it into the world with a funnel...

...and begin to generate sales without taking on a mountain of debt.

Click Below To Register For Your First Funnel Challenge For FREE!

Hurry, and click here to secure your seat for FREE before it’s too late.

LatAm Startup Office Spotlight

This week, Drivana gave us a sneak peek into its offices in Mexico City!

Drivana offers a unique car rental experience, enabling users to rent directly from local hosts.

Whether you need a compact car for city driving or a stylish convertible for a special occasion, Drivana connects you seamlessly with local vehicle owners, ensuring you find the perfect match for your needs.

Check them out here.

Last Startup Poll Results

Thanks for reading. That’s all from us today, see you soon!

—Manuel and Diego