Integra Five LATAM Dispatch

May 13th, 2022
Integra Groupe

CounterPoint Data reveals how the refurbished marketplace grew and developed across 2021

CounterPoint, a research and consultancy firm, shed light on market shares from different tech companies for the refurbished smartphone global economy. Refurbished smart phones can be repainted and repaired into a very close semblance to its original self.

Refurbished smartphones are far more affordable than brand new retail price, and the industry’s success simply continues to grow. Statistics provided by CounterPoint detail a 15% year over year growth for refurbished smartphones between 2020 and 2021, which is the sharpest YoY incline seen in the past few years.

2020’s market boom can be attributed to the COVID-19 pandemic and the necessity to use a tech device more often. The result was that when 2021 came around, original new phones were hideously expensive and tech parts were in shortage creating a strong footing for the industry. Latin America leads the market with the site with the highest amount of growth.

Source: Counterpoint

How to make talent scouts work for you

Traditional venture capital has a centralised means of evaluation for scouting talent. It is run by a small number of prestigious and highly paid general partners. Sequoia, an American venture capital firm has had a scouts program for over ten years and newer VC firms, Village Global and AngelList Spearhead rely on scouting models to find talent. Tyler Cowen, an economics professor at George Mason University suggests that to effectively scout, it is vital to look at where scouts and scouting have been most successful: fashion supermodels.

Of course, the world of startups does not fit into the same class as modelling, but the key to successful entrepreneurship being around the world in many diverse locales, it is not hard to see why scouting models are attracting attention.

Scouting is not the only means to find creative contributors, but Mason suggests that if you are to succeed in the future quest for talent, understand scouting in VC and its strengths and limitations is a great place to start.

BNPL in 2022: 4 fintech investors discuss regulation, trends and how to stand out

Buy now, pay later (BNPL) has quickly established itself as the go to method of financing for a variety of purchases, particularly online. We have seen Klarna, PayPal, Afterpay and Affirm generate more than $3.2 billion in revenue last year. Whilst BPNL is mostly used for online shopping, customers outside of the US have begun to adopt BNPL alternatives at brick-and-mortar stores.

Investors see BNPL moving from retail and entering health care sectors. Frances Schwiep, a partner at Two Sigma Ventures said that “BNPL will become a more popular POS option in 2022, not only across brick-and-mortar stores, but also in sectors like healthcare, where instalment payments already exist but have not yet crossed the chasm to digital.”

In Latam, BNPL is ripe for innovation with geo-specific dynamics key to their success. As Kyle Miller, founder of Nelo (a LATAM-based BNPL) and former product manager at Uber, stated “I’ve found that the product gap I saw with Uber in established versus developing markets is MUCH wider for financial products, specifically credit and BNPL. Major differences I’ve seen include available underwriting data, repayment methods and general consumer behaviour. The winner of BNPL in LATAM will have been built in LATAM for LATAM.”

Source: Analysis of publicly listed BNPL providers (Afterpay, ZIP, Sezzle for their US businesses); analyses of Synchrony, ADS, and CRS portfolio.

Pitchbook: Emerging Tech Research – Mobility Tech Report 2022

Pitchbook published its emerging tech research report in May 2022, which assesses VC trends and emerging opportunities. Q1 of 2022 saw a cool down from 2021’s quick pace. The $13.9 billion in deal value represented a 35% decline compared with Q4 2021 and a 43% drop YoY, while the number of deals declined 10% and 20%, respectively. Autonomous driving, EVs, and micromobility represented the largest segments of dealmaking with nearly a third of the total deal count combined.

Notable deals in the quarter included Bolt, which raised $710.5 million to expand its ridehailing, micromobility, and delivery super-app platform across Europe and Africa; Sweden’s Volta Trucks attracted to $260.5 million in late-stage investment to accelerate development of heavy-duty electric trucks; and Israel-based AutoBrains, which raised $120.0 million from BMW I-Ventures, among others, to further research and development (R&D) in its self-learning AI technology for autonomous driving. Late-stage VC deals dominated with more than half of total deals in Q1.

Mobility tech landscape: advanced air mobility, auto commerce, autonomous driving hardware, autonomous driving software, electric vehicles, fleet management and connectivity, micro mobility, last mile delivery, public mobility solutions and ride hailing. 

MercadoLibre posts record revenue, braces for macro jitters

MercadoLibre, a Latin American e-commerce retailer, grew its revenue more than forecast in the first quarter, boosting optimism that the company will continue to hold its weight in a landscape where online competition is getting fiercer. Net revenue in the first three months of the year rose 63% from a year earlier to $2.2 billion. Topping the $2 billion average estimate of analysts surveyed by Bloomberg.

MercadoLibre is expecting to use its cash to fund investments as they wish to grow organically, rather than through acquisitions. Pedro Arnt, the CFO of MercadoLibre said that “In this environment where cash is absolutely king, it’s even more likely that we will continue to stick to our preference to build.” Fintech is the company’s fastest growing portion by revenue, with 108% growth compared to the Q1 in 2021.

Source: eMarketer, May 2021
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