Mexico, promised land for Argentine startups

A large group of Argentine entrepreneurs He will leave his homeland to go to Mexico. Its aim is to amplify the initiatives they carry out and bless itself with the investment in the digital transformation that the Aztec market has faced.

One case is that of Mofiler, which offers a location intelligence platform as a service and has just begun its operations in Mexico. Founded in 2018 and funded with $275,000, it had already had customers in Mexico for two years, “but a local operation that allows us to reach potential customers more directly is important to our company,” he said. Bryan Tafel, co-founder of the initiative. “Mexico represents a great opportunity, because it is a very accessible country to provide services from abroad. Its proximity to the United States also generates consumption habits focused on innovation,” he added.

The company’s plan is for annual sales of $2.5 million, thanks to the launch in Mexico. “We work with channels that help us generate traction and understand the market. We take advantage of their local presence and reach to key customers, while they offer value-added services with our solutions,” explained Tafel.

Population density and consumption are the main factors that seduce Argentine startups. “Mexico is one of the largest markets in Latin America, with more than one million points of sale,” she confirmed. Eugenio Harracàwhich he co-founded Raise awareness in 2019, dedicated to services to avoid cuts in the food and beverage cold chain and generate commercial insights. To do this, it also uses the Software as a Service format.

In December, Sensify raised a $535,000 investment from Kamay Ventures and Innventure, along with Brazilian fund CVC Novus, and is using it for business development in the Mexican market.

“By becoming a local player in Mexico, we also have competitive pricing advantages over European and Asian companies,” said Harraca, who points out that 40% of Sensify’s revenue this year will come from foreign markets and that Mexico represents the 80% of these incomes. “The goal is to reach a turnover of one million dollars, with the help of local partners who allow us to understand some consumer habits, behaviors and customs,” she said.

Almost the same logic, applied only to health services, explains the landing of Wiri in February last year. “In Mexico there are 30 million overweight and hypertensive people and 15 million with diabetes. And only 9% of the population has private insurance,” she explained. Mattia Sieleckiwho co-founded the healthtech in 2019, after raising $1 million in investment.

Wiri offers services to both users and healthcare companies, and Sielecki expects to bill $1.25 million (75% of total billings) in the Mexican market this year.

For Gabriela Ruggerimanaging partner of Kamay Ventures, the regional venture capital fund of Coca-Cola, Arcor and Bimbo, “Mexico is a promising destination for Argentine founders. “It allows those looking to expand their business to access a larger and more diverse consumer base.”

Another relevant sector in Mexico is fintech, where it is making headway. INIa white label as-a-service payments platform founded in 2021.

“Mexico represents one of the greatest commercial opportunities. The growing demand for digital financial solutions, combined with the need to reduce cash management in the supply chains of large companies, make it a strategic focal point,” she analyzed. Enrique Cortes Funes, co-founder of the initiative, which has already raised $2.7 million from Globant, Newtopia, Banco Comafi and Kamay Ventures. Cortés Funes expects Mexico to account for 40% of its sales, with revenue of $1.9 million for the first year of operation.

Another example of an Argentine startup whose goal is to transcend borders and adapt its solutions to multiple markets is that of Takenos. Created at the end of 2021 and with a capital investment of $400,000 under its belt, it began its expansion in January to bring its services closer to the Mexican market. “We provide freelancers with access to stablecoins and local currency, addressing their international financial transaction needs,” explained the co-founder. Luca Posada.

The initiative’s customers are mainly concentrated among professionals in the technology sector. “Mexico positions itself as a leader in the export of knowledge services. It therefore represents a significant opportunity for more than five million professionals seeking inclusive and efficient financial solutions,” she noted.

Through commissions for transfers from companies and platforms to independent workers, Takenos expects revenue of $5 million in Mexico, equivalent to 25% of its annual income. “Although we face competition from traditional entities such as Western Union and banks, we are focused on optimizing the user experience and expanding our presence in the country, with the aim of consolidating our position in Latin America” , concluded Posada.

Risky investment

One of the pioneers in receiving capital financing in Mexico was Nubilitywhich offers professional cloud application migration and management services, at the end of 2013. “There is a lot of competition, but also expansion, as companies need to innovate and adapt their old technologies to make them more efficient,” he highlighted Juan Ozino Caligaris, co-founder of the initiative. He estimated sales in that market at $5 million this year.

nubiral, founded in 2012 by Massimiliano Giacri and Fernando Zerbini, It began its operations in Mexico in 2019. There it offers data and artificial intelligence services, software development and information technology operations, observability and security, supported by Microsoft and AWS, to Slim Group companies. “While it is true that we are challenged by the need for talent and investment, the curve will continue to grow exponentially,” explained Jorge Linares, Chief Revenue Officer of Nubiral and who led the company’s internationalization project. In this sense, its sales target for 2024 is $4.1 million.

Created at the end of 2014, the provider of content and solutions based on augmented reality CamOn XR It has been present in Mexico since 2020 and expects to turn over more than $1 million in that market this year.

“Not just because of GDP and population, there are more opportunities. Furthermore, it is a stable economy in terms of monetary policy and inflation, which allows for the expectation of sustained growth. And in general, there is a great business environment. Although the time to close the first business deals is usually long, once you manage to start working with a client, it is very likely to continue,” she noted. Damiano Alcalaco-founder of the initiative.

“On the contrary, the Argentine situation does not help. I have personally experienced all kinds of crises and structural changes that do not allow for planning. As a company, the best way to counteract these imbalances is to not depend on the domestic market and focus on internationalization. Meanwhile in Argentina we have talents who can work in the most demanding markets and this is a great advantage,” she concluded.

Frederick AntonI am a managing partner of Hi Ventures. In addition to the initial investment in Nubity, it has made investments in Wonder Brands, Mendel and a yet-to-be-announced fourth bet, totaling more than $10 million in Argentine entrepreneurs. And his optimism about expansion into Aztec lands is overwhelming: “Ten MercadosLibres will arrive in the next few years. Some are already operating in Mexico.”