Entrepreneurship in Latin America has been taking flight in recent years. Experts see it as a catalyst for development in the countries, which will boost their economies. This is also creating a lot of job opportunities and making space for innovative solutions for challenges. In 2021, the Latin American and the Caribbean regions got the most venture capital investment, an amount of $15.7 billion.
Despite the political and economic challenges, the Latin American entrepreneurial spirit remains unbent. Latin American entrepreneurs are agile and focused on solving real problems that have been longstanding in their countries.
Before we review some of the best Latin American startups, let us first discuss what is so special about it.
Why Are These Startups Significant?
The contributions made by these startups are significant due to the developing status of Latin American countries. Innovative solutions coming from Latin American brains, that were resilient enough to secure funding from the US, is a major accomplishment. The Latin American presence in the global economy will also eradicate the bias and stereotypes associated with them.
Just like US companies are finally acknowledging the Hispanic presence, the world will do so too. The majority of the US organizations now have dedicated Spanish customer service for their Hispanic customers. This is a big leap from Hispanics being treated as third-class citizens. One such example is Optimum servicio al cliente which caters to its non-English-speaking Hispanic customers. Optimum is focused on providing top-tier service to its Hispanic audience, like they can watch the Spanish TV channels aired in Latin America, through Optimum.
This is why these Latin American startups are significant, for the fact that they are bridging global gaps, using technology. This brings us to exploring these Latin American startups and their stories of how they got to where they are:
1. Uils
Uils (pronounced ‘wheels’) is a startup that combats a major problem faced by rideshare drivers i.e., financials. They do not get the payments on time, which causes them to suffer in terms of money. So through Uils, the drivers get a digital wallet with a virtual account, which gives them loans based on their driving history. Machine learning models are used to analyze their driving history to calculate what kind and how much loan they are eligible for.
This loan ultimately solves their financial pressures and enables them to own the cars they currently have to rent. The digital wallet allows them to receive their earning from different ride-hailing companies in one place.
Uils used to provide car rental services to ride-hailing drivers. But soon after, the founders realized that the drivers did not have access to credit and were under a lot of financial stress. To combat this, they changed the form of their services and used their driving history to make them eligible for loans.
2. Nexu
Nexu is a Mexico-based startup that aims to make buying cars accessible. As an alternative loan business, Nexu aims to simplify getting loans for cars. Nexu turns the otherwise long approval times and poor service from banks into a non-issue with digital approvals. It has an advanced credit model that analyses customers’ credit history.
Nexu gives loans to customers at the point of sale by collaborating with car dealerships. Plus, they create completely personalized financing plans for their customers, which lends a lot of flexibility. The automotive industry in Mexico has a lot of potential but it meets less than 50% of the demand due to complex processes. Nexu aims to bridge that gap by empowering more people with car loans.
3. Mattilda
Another startup from the FinTech domain, Mattilda provides financial security to schools through a cloud-based payment collection system. Since people still pay school fees for their children in cash in Latin America, this causes difficulty in managing these manual payments. It also imposes a greater risk for schools to suffer financial loss.
Mattilda is a simplified and digital platform where parents can pay through a variety of options. By unifying all payments in one place, schools can easily predict their cash flows. This makes accounting seamless and reduces the chances of miscalculation. Moreover, it also gives loans to schools allowing them to grow more.
4. Eureciclo
This Brazilian startup is making waste management easy by applying reverse logistics. It aims to improve recycling rates in Brazil by directing the packaging waste to its manufacturing company which involves tracking post-consumer waste through technology. It partners with sorting centers that collect waste in Brazil to take the waste back to its production change.
Brazil is the largest producer of urban waste in Latin America, so Eureciclo comes as a perfect solution to meet the national reverse logistics targets. Every company that uses this service, gets the Eureciclo seal, which serves as proof that the company is taking steps to recycle waste.
5. NotCo
This revolutionary startup sells plant-based alternatives, made with its AI platform, Giuseppe, to save endangered animals. In collaboration with a Peruvian chef Diego Oka and Giuseppe, NotCo recreates plant-based alternatives, to save endangered animals.
Their aim of removing animals from the global food chain employs an AI algorithm. This AI algorithms analyzes over 300,000 plants to come up with more than 260 Quintillion combinations. The result is plant-based alternatives of animals that have the same texture and taste. NotCo products include NotChicken Patties, NotMilk, and NotBurger, to name a few.
In short, these startups are more than just solutions: they represent the Latin American drive to come to the forefront of the global digital economy. All of them are paving the way for more Latin American brains to execute their brilliant ideas and play an important role in creating more opportunities for economic improvement in their region!
