Fintech unicorns thrive as Latin American growth outpaces global tech, led by Brazil and Mexico

By Pooja Sharma

Latin America will be the best source of tech unicorns

With growth in Latin America, particularly Brazil and Mexico, outpacing the global tech potential, fintech unicorns are thriving in the region more than ever before.

Once overlooked by the global technology industry, Latin America (LatAm) is set to be the region of choice for technology “unicorns,” particularly fintech startups, to emerge as game-changers and industry leaders in 2024. Across the world, companies are realizing the benefits of the region's emerging tech talent and market potential and are flocking to join the region's rapid growth.

The region's recent growth is due to significant venture capital investment in recent years. Raises approximately $15 billion in 2021The funding has come primarily from U.S. companies recognizing the strength of the region's growing IT sector, accessible fintech tools, and the acceptance of financial inclusion solutions by industry regulators – factors that are particularly important in advancing fintech.

Brazil and Mexico currently have the most unicorns, valued at over $1 billion, and as recent studies have already shown, this growth is set to continue beyond 2024. QI Tech becomes a unicorn company regional.

“It's clear that the Latin American market's position in the technology industry cannot be underestimated,” he said. Jeremy Barbour, CEO of Lannister“By investing in the rapidly developing fintech sector, Latin America is quickly positioning itself as the next big leader in terms of talent and the potential of its developing companies.”

Once considered a nascent region, many will be looking to Latin America, particularly Brazil and Mexico, as leaders in fintech investment and technological advancement in 2024. Latin America's growth is already outpacing more established regions, especially in the fintech sector, driven by the need for financial inclusion solutions.

Baber agrees that the region's popularity and growth is due to a combination of a tech-enabled workforce and its proximity to the United States. “Gen Z and millennials aren't just supporting new fintech developments for convenience reasons. They are also more tech-savvy than previous generations, embracing the future of technology and keen to further their careers in IT.”

“Similarly, real-time collaboration with the US is easier as we're in the same time zone, meaning more investment locally rather than outsourcing across the globe. The greater ability to interact during working hours makes for stronger business relationships.”

Latin American governments and regulators are taking a more positive stance towards fintech, cryptocurrencies and new financial developments, as previously seen in El Salvador. For fintech to thrive, there needs to be a willingness to change and the next big technology, so the region's alignment with these values ​​makes it a particularly strong location for fintech unicorns.

This is evident for Brazil, which is by far the best source of fintech development. With continued support from improved education, government initiatives, and encouraging digital innovation, Brazil's fintech scene will undoubtedly grow even more and the market will be better positioned to capitalize on it.