2023 LATAM Commerce Enablement Report

We are pleased to present our views on the LATAM Commerce Enablement, doing so with the aim of helping increase transparency and communication between the companies themselves, as well as financial and strategic investors.

ComCap has been active in the technology-oriented space and our report is aimed at enhancing transparency and communication between the market players, as well as financial and strategic investors. 

The report is divided into four sections: E-commerce, FinTech, Logistics and Web 3.0. 

The convergence of the LATAM mobile-first society, increased connectivity, and secular trends towards digital commerce and payments, along with the rapid adoption of Web 3.0 technologies, are presenting unique and highly attractive investment and business expansion opportunities.

Key trends highlighted in the report include:

  • LATAM boasts a large and attractive population: nearly 650 million with high internet penetration
  • Fast growth and large GDP: Brazil (#9 in global GDP) and Mexico (#15 in global GDP) combined are on track to overtake the largest economies in Europe in terms of GDP over the next decade
  • Global investment pouring into Latam: In 2021, the total funding for LATAM SaaS companies reached $2BN, a 7x y/y increase and a 100x that of 2013. 
  • Mobile first society: Mobile devices account for ~70% of web traffic, and internet penetration exceeds 66%, above the global average of 53%. Mobile-centric unicorns emerging throughout the region include Nubank, Cornershop, Rappi, and QuintoAndar.
  • LATAM FinTech market is exploding: driven by the pressing need for financial inclusion and servicing the broader population, of which 70% is underbanked. Favorable government regulations, such as the “Ley FinTech” law are prioritizing financial inclusion and transitioning away from cash. 
  • Numerous use cases for crypto/web 3 applications: High inflation and currency volatility are contributing to the adoption of digital currency/assets and the emergence of innovative crypto and web 3 applications as early adopters seek hedges against inflation and holding cash.