Mexican Startup Businesses and their Potential Growth
(Photo : Stocksnap)

Every year, more and more entrepreneurs and investors are entering the competitive market as Mexican startup businesses.

An article from Latam List stated that Mexico's startup ecosystem is the second largest in the entire Latin American region. With support from the government, startup accelerator campaigns, and escalation of venture capital activities, it is no doubt that its startup ecosystem is thriving. From 2018 to 2019, investment in startup ventures had doubled.

Here is a few Mexican startups and some stories about its major investors and potential growth predictions that we should look forward to in 2020:

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This Mexican startup is one of the largest startups in Mexico. It has a post-money valuation of $350 to $400 million after its last round. Similar to the US's Square, it creates mobile credit card readers. It targets small businesses and aims to help them receive card payments. Additionally, the company captured the attention of Japan's SoftBank. This lead to an investor of $100 million Series C round with contribution from General Atlantic from the US.

Konfio

Mexico's attraction to the fintech market is evidenced by this startup business. This is one of the startups in Mexico that attained relevant foreign investment. It is a fintech business that offers credit lines through an online mechanism to SMEs that often goes unnoticed by banks. It had acquired major investments from SoftBank and Goldman Sachs.

Cornershop

Cornershop mainly provides mobile grocery delivery services. It aims to help Latin Americans do their grocery shopping without having to leave their homes. This Mexican-Chilean startup business recently reached headlines after Uber purchased its 51% shares at $450 million. Previously, a 100% acquisition agreement with Walmart was prohibited by the government of Mexico for a potential breach of the antitrust law. However, the Uber purchase had helped skyrocket the startup business's value by four times in four months.

Grow Mobility

This Mexican startup business primarily offers e-scooter services. It offers alternative transportation options for at least five million commuters in 23 different Latin American cities. Grow Mobility takes third place as the biggest e-scooter business in the world after Grin (Mexico) and Yellow (Brazil) collaborated to establish this startup company. Recently, the company merged with Flinto, a Mexican fintech business. This was done to facilitate easy online payments through their application. It is now being considered as the county's potential future unicorn. As Grin is available through the Rappi application, it opens access to millions of people in the region.

Billpocket

Billpocket is a helpful tool for vendors. It is a mobile POS system that helps sellers to conveniently accept and manage debit and credit card payments from their customers. It announced an investment from Axon Partners Group for their Series A. The startup business targets assisting Mexican SMEs to access financial services. It also aims to help SMEs improve their sales by up to 30%. They plan to do this by streamlining card payments. The market for mobile POS in Mexico is competitive. Billpocket is a growing business to look out for.