“If you don’t climb the mountain, you’ll never enjoy the view.” – Pablo Neruda
October 26, End Of Day
Coco: Bridging the digital gap, Coco offers an "Internet in a box" solution, striving to provide internet access to every community. Based in Monterrey, Mexico, they operate in the Internet and Telecommunications sectors. Their innovative approach has already connected over 10,000 people to the internet. With a remarkable average revenue growth of 26% QoQ, Coco's business model emphasizes accessibility, making it easy for communities to benefit from their services. Dive deeper into the case here.
Gamefic: Elevating company performance through the power of gamification, Gamefic is based in Sao Paulo, Brazil, and operates in the Gamification and SaaS sectors. They address the contemporary challenge of maintaining employee engagement, especially in the era of remote work. They have over 60 clients utilizing their gamification solution and have generated more than 300k in revenue in 2023. Their innovative approach to fostering connection, motivation, and productivity among remote teams shows their commitment to organizational success. Dive deeper into the case here.
Dive deeper into other fundraising firms in latam here.
Latin America, often referred to as the world's breadbasket, is undergoing a significant transformation in its agricultural and food sector. With the region accounting for 16% of global food and agricultural exports, the demand for increased agricultural production is tangible. By 2050, to cater to a projected population surge of over 35%, agricultural production in the region must grow by a staggering 80%. While Latin America boasts vast tracts of unexploited agricultural land, the key to meeting this demand lies in enhancing productivity and sustainability. This is where agtech or foodtech solutions can step in.
Factors affecting the market potential:
Recent news from this sector:
SiloReal, an Argentine agtech startup, has secured an investment of USD $1.5 million to enhance its innovative approach to agricultural storage. The company offers a unique solution in silobag storage, using technology to provide identity, evidence of existence, and condition of the silobags, which benefits producers by ensuring traceability, increased storage security, and the potential to use silobags as credit collateral. SiloReal's advanced sensors and software monitor the condition and quantity of stored grain, addressing challenges faced by farmers in Brazil and Argentina.
The Yield Lab Latam, a leading venture capital firm in Latin America, has invested in the Mexican agricultural technology company, Solena AG, which focuses on studying the soil microbiome to boost farmers' profitability. This investment, part of a Series A round totaling USD $6 million, underscores The Yield Lab Latam's dedication to early-stage AgriFoodTech startups. Tomás Peña, the General Director of The Yield Lab Latam, emphasized Mexico's significant growth potential, while Solena AG's co-founder, Irving Rivera, highlighted their goal to diminish dependence on inorganic pesticides and enhance soil health. A 2022 report indicates that the AgTech sector has attracted USD $1.7 billion in investments over the past decade, with 2020 and 2021 accounting for 64% of the total capital since 2011.
Colombian food delivery apps have reached a preliminary agreement to pay social security for 120,000 workers. This comes as President Gustavo Petro's government aims to strengthen workers' rights. According to the agreement with the Colombian government and AlianzaIn, which represents companies like Rappi and Didi, these delivery firms might cover 60% of the social security contributions for their workers, even if they remain as independent contractors. Currently, delivery messengers don't receive these benefits, and for Rappi alone, this could cost over $1.4 million annually.
Argentina: In Argentina's general election, the ruling Peronist coalition led the polls, defying expectations and setting up a run-off between Economy Minister Sergio Massa and libertarian Javier Milei. Despite the country's economic challenges, Massa secured 36.6% of the vote, outpacing Milei's just over 30%. The strong performance by the Peronists reduced the ideas about a potential radical shift in policies. For instance those proposed by Milei, such as dollarizing the economy. The run-off, scheduled for Nov. 19, will present two contrasting economic visions for Argentina. Patricia Bullrich, who secured 23.8% of the vote in the first round, has indicated her support for Javier Milei in the upcoming runoff, emphasizing the need for change and unity against a potential new Kirchnerist cycle led by Massa.
Colombia: China and Colombia have elevated their relationship to a "strategic partnership," indicating a shift in Colombia's alignment towards Beijing. During his first state visit to China, Colombian President Gustavo Petro met with Chinese President Xi Jinping, with Xi emphasizing the nations' mutual friendship and partnership. This move makes Guyana the only South American nation without such a designation from China.
Costa Rica & Honduras: The leaders of Costa Rica and Honduras have decided to eliminate recent visa requirements for travelers between their countries, resolving a disagreement that had impacted Central American trade. This agreement also ensures that trucks transporting goods between the two countries can cross borders without hindrance. While the visa requirements have been lifted, travelers will still need to provide a police certificate detailing their criminal or police records when crossing borders.
Check our recently published insights here, to read more about latam’s tech ecosystem.
Recent posts:
EdTech in Latin America:
The pandemic has not only accelerated the adoption of EdTech worldwide but also fueled a remarkable surge in edtech investments globally. Latin America experienced a remarkable sixfold increase in edtech investments in 2021 alone. This growth can be attributed to the emerging trend of nearshoring, where companies seek closer operational bases, resulting in a rising demand for a technically skilled workforce in countries like Argentina, Peru, and Mexico.
🔍Read the rest of the analysis here.
Blockchain & Web3 startups in Latin America:
What factors are affecting the market potential of blockchain technologies in Latin America?
High Potential for Financial Inclusion: Latin America shares common challenges, including high poverty rates and limited financial inclusion. These conditions make the region favorable for blockchain and web3 solutions that aim to financially empower the masses.
Historical Economic Conditions: The region's past economic challenges have spurred increased investments in innovative solutions.
Innovation and Transparency: Blockchain projects in Latin America are at the forefront of innovation. They're introducing new financing models, building community networks, championing transparency, and reducing costs.
🔍Read rest of the analysis here.
