Connect33 Newsletter | September 2025
Databricks takes stake in Indicium, Improving's Guatemala acquisition, CloudHQ makes record investment, Amazon takes stake in Rappi, and our H-1B commentary.
Hi readers, welcome to the latest edition of the Connect33 newsletter, which covers Latin American technology trends, expansions, and M&A.
This month: Databricks doubles down in Latin America, Improving makes an acquisition in Guatemala, CloudHQ makes a record investment, Amazon takes a stake in Rappi, and we break down the latest H-1B visa developments. ¡Vámonos!
Scaling Engineering Teams in LATAM: Our latest interview features Chris Cali, a serial entrepreneur and co-founder of Newfound Equity, who shares his journey in scaling Spark Digital from 10 developers to a 400-person nearshore operation in Argentina, before its acquisition by intive in 2021. Chris offers insights on building high-quality nearshore teams, navigating mergers and acquisitions from both sides of the table, and how AI is reshaping the tech services landscape. Read the full interview.
“You have to build and foster an environment where high quality is rewarded... Treating [software engineers] like they’re worthwhile is half the battle. And so many companies look at their nearshore location as a ‘less than’ versus a core part of their business.”
Trump’s H-1B visa fee to hit US employers with $14bn annual bill: US employers are facing a hefty annual bill for hiring skilled foreign workers after Donald Trump imposed a $100,000 fee on the cost of securing a visa for new employees to enter the country. Silicon Valley relies heavily on H-1B visas to hire engineers, scientists, and coders from overseas. The non-immigrant visa is also widely used by specialist industries, including accountancy firms and healthcare companies. Roughly two-thirds of 2023 recipients worked in the IT industry, according to USCIS.
Our take: With over 40 combined years of building engineering teams across Latin America, Connect33 sees this policy accelerating a trend already underway.
Over the past five years, major US companies, including Braze, Coinbase, Dropbox, Google, Lyft, and Pinterest, have expanded engineering hiring in the region. CBRE’s 2025 Tech Talent Employment Report shows an average 55% tech talent growth rate across eleven Latin American markets—and we expect this momentum to accelerate as companies reassess their global talent strategies.
Without visa uncertainty, lottery systems, or high six-figure fees, markets like Mexico City, São Paulo, and Buenos Aires offer competitive costs, overlapping US work hours, and direct flight access. If you’re exploring LATAM as a potential talent, get in touch.
What they’re saying:
“I’ve worked on H1-B politics for 30 years. Trump’s $100k per year tax is a great solution. It will mean H1-B is used just for very high-value jobs, which will mean no lottery needed, and more certainty for those jobs.”
-Reed Hastings, Netflix co-founder
“In the middle of an AI arms race, we’re telling builders to build elsewhere. We need American Little Tech to win — not $100K toll booths.”
-Garry Tan, CEO Y-Combinator
1 big thing: Databricks takes stake in Indicium
Databricks, the data and AI platform company, made its first Latin American investment through Databricks Ventures by taking a stake in Indicium, a Brazilian pure-play data and AI services firm. Indicium generated approximately $6M in revenue in 2023, and currently, 40% of revenue comes from U.S. clients, with plans to flip that ratio to 60% by 2026, ahead of a potential IPO. (Reuters)
Why it matters: This marks a strategic shift in Databricks’ LATAM approach—moving beyond expanding its own operation to building a specialized partner ecosystem. It follows Databricks’ recent expansion of its São Paulo office and the launch of an office in Mexico City.
The bigger picture: Indicium’s pure-play focus and modern data stack expertise make it an ideal vehicle for Databricks to penetrate Brazil’s growing enterprise data market. With 60% of Indicium’s current revenue from Brazilian clients, Databricks gains immediate access to local relationships and market knowledge that typically take years to develop.
What to watch: Will Databricks replicate this partner investment model in other LATAM markets (Mexico, Argentina, Colombia)?
Amazon (NASDAQ: AMZN), the global e-commerce giant, acquired a stake in Rappi, the Latin American on-demand delivery startup, marking a significant investment in the region’s logistics and delivery infrastructure. (Bloomberg)
Improving, a modern digital services organization with a significant presence in Mexico, acquired MangoChango, expanding its capabilities in digital innovation and technology consulting across Latin America. (Improving)
CloudHQ, a leading data center and digital infrastructure provider, has announced plans to invest $4.8 billion in building multiple hyperscale data centers in Mexico, marking one of the largest digital infrastructure investments in Latin American history. (Reuters)
SEK, a European technology and software company, acquired the Latin American subsidiaries of Dreamlab Technologies to expand its regional presence and enhance its technology solutions portfolio across multiple LatAm markets. (Global Legal Chronicle)
Dropbox (NASDAQ: DBX), the cloud storage and collaboration platform, expanded into Mexico to strengthen its presence in the Latin American market. (Connect33)
Kapital, a Latin American fintech company, raised funds at a $1.3 billion valuation, demonstrating strong investor confidence in the region’s financial technology sector and digital banking innovation. (Bloomberg)
Cloudera, an enterprise data cloud company, brought AI to data anywhere by joining Amazon Web Services’ Brazil 2P program, expanding its artificial intelligence and analytics capabilities for Brazilian customers. (Cloudera)
Google Cloud, the cloud computing division of Alphabet (NASDAQ: GOOG), brought a new era of AI innovation to Brazil with expanded infrastructure and artificial intelligence services designed to accelerate digital transformation across Latin America’s largest economy. (Google Cloud)
SoftExpert, a Brazilian enterprise software company specializing in compliance, quality management and digital transformation solutions, increased its presence in Mexico while eyeing expansion into Argentina as part of its international growth strategy. (BNAmericas)
Pisteyo, a global AI strategy and innovation consulting firm, has officially launched with its headquarters in Bogotá, Colombia, serving as a regional hub to support businesses across Latin America in generative AI, data strategy, and organizational transformation. (LinkedIn)
Nuvini Group, a global technology consulting and digital transformation company, announced the acquisition of MK Solutions to expand its capabilities and strengthen its presence in enterprise software solutions and IT services. (Globe Newswire)
Connect33 is a consulting firm specializing in helping US companies build, buy, and partner with Latin America’s top software development teams. Our list of companies we’ve scaled with includes mid-to-large enterprises such as Atrium, Bain & Company, Braze, C3 AI, EPAM, phdata, Tekton, and more.
Additional stories we’re following
LatAm-focused roles at top tech companies.
Stripe is hiring an Account Executive, Enterprise (São Paulo, Brazil)
Zendesk is hiring a Manager, LATAM Renewals
Forcepoint is hiring a Manager, Customer Success NAM/LATAM
Dataiku is hiring an Enterprise Account Executive, LATAM (Brazil)