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The 3 Latin American Companies That Have Grown The Most Recently

Brazil And Colombia, With Their "Startups", Lead the Ranking Of Latin Companies With the Highest Growth In the Region.

Man programming in an office

Although for many it is a surprise, it is precisely this type of business, mostly virtual, that is setting the standard in Latin America. Photo: Pexels

LatinAmerican Post | Christopher Ramírez Hernández

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Leer en español: Las 3 empresas latinoamericanas que más han crecido en los últimos años

A 'startup' is considered as an emerging company based on new technologies, therefore, in that order of ideas, they represent an innovative alternative in relation to companies and the traditional market.

But why speak of a 'startup'? What is its importance in the Latin American market? Although for many it is a surprise, it is precisely this type of business, mostly virtual, that is setting the standard in Latin America.

Now, the statistic is even more specific when it adds that the companies that have advanced more than the rest in recent years are not only 'startups', but are also considered “unicorns” within the Latin industry.

According to Statista, a company that specializes in market data and consumer information, a unicorn company is a "privately owned startup with a current valuation of US $ 1 billion or more." However, for this monicker to remain over time, it is necessary that the company is not made public or that it has been acquired by a multinational emporium.

Knowing this information, and taking into account that they are not part of the traditional market, these are the three Latin American companies that have grown the most in recent years, based on their investment, the number of countries in which they have a presence and their participation in the stock Exchange.

Nubank

Founded in 2013, the neobank (100% digital bank) has become one of the most powerful “unicorns” in the region, both in its country of origin (Brazil) and in Colombia, Mexico and Argentina where it also has a presence.

According to themselves, they are " the largest independent digital bank in the world, reinventing the financial lives of more than 40 million customers." However, beyond what Nubank can say about themselves, there are some numbers that, in effect, support its success.

In 2021 alone, the company has been able to raise a little more than 1.15 billion dollars, thanks to its investment round known as "Series G", in which large international investors have injected money, such as Berkshire Hathaway, an American company that the Last June it deposited 500 million dollars for the growth of this “startup”.

In this way, in just 8 years, the company founded by the Colombian David Vélez, and co-founded by the Brazilian Cristina Junqueira, already has a value of at least 30 billion dollars; which could increase about 55 billion thanks to its imminent entry into the US stock market, according to Reuters analysts.

 

Rappi

Rappi is one of the best-known 'unicorns' in Latin America, taking into account that it is the first in its category in Colombia, in addition to having exponential growth since its birth in 2015. Since then, according to its manager in Colombia, Matías Laks , the domicile company has reached a market value of 4 billion dollars, 3 billion more than those achieved in 2018 when it reached the 1 billion dollars that made it the first unicorn in the 'coffee-growing' country.

Thus, the company that has a presence in Colombia, Mexico, Brazil, Peru, Ecuador, Uruguay, Chile, and Argentina, has exceeded its value by 400% in the last three years, with entries such as the 300 million dollars it managed to raise. in 2020.

Also read: Billion Dollar Losses: 5 Big Investments That Failed

However, Laks has explained that, unlike Nubank, Rappi still does not want to get involved as a public company in the United States stock market, although it is a medium-term objective to be able to reach the New Stock market. York and thus increase its value among startups worldwide.

 

WildLife Studios

Video games also have an impact in the region, and WildLife Studios is a clear example of this. According to the latest CB Insights ranking, the creators of the famous mobile game Tennis Clash are ranked 142 among the fastest-growing startups in the world, although this number rises to number 3 in Latin America.

Behind Nubank and Rappi is this Brazilian developer that in April 2021 registered a market value of 3 billion dollars. It should be remembered that only two years ago (2019), during an investment round, WildLife obtained at least 60 million dollars that helped the value of the company increase to 1.3 billion dollars at that time; of course, a “lower” figure compared to what was achieved 24 months later.

With a growth of 230% in recent years, this technology company born in Sao Paulo, Brazil, in 2011, has managed to expand to three other countries, one of them outside of America (United States, Brazil, Argentina and Ireland). They currently have a catalog of more than 60 games and a total of 800 employees spread over their four offices.

In this way, both Brazil and Colombia have taken the lead in digital business growth in Latin America, with the former as the absolute leader of startups in the region with at least 11 'unicorns' ranked among the most valuable in the world.