A new study naming the 10 most promising startups in Mexico includes six companies focused on payments and financial technology (fintech), highlighting the growth of digital and app-based financial solutions in one of Latin America’s most important economies.
The list also includes companies involved in real estate, automobiles, and logistics, however it is fintech in Mexico that proves to be the most significant sector.
Published by LinkedIn, the study used data compiled by the professional networking platform and took into account factors such as user interaction with the company and its employees, workforce growth, interest in job postings, and talent acquisition.
SEE ALSO: Starting a Business in Mexico: a How-to Guide
That included the stipulation that job growth during the period of evaluation had to be at least 15%, while to measure talent acquisition, LinkedIn analysed how many candidates had moved from firms on its own “Best Companies” list. The study was done between July 1, 2020, to June 30, 2021.
The list included companies that were headquartered in Mexico, had at least 50 employees, and were no older than seven years.
10 ‘most promising startups’ in Mexico in 2021
Below, the 10 companies that made the list are highlighted, with six of them offering fintech in Mexico, or otherwise involved in providing finance-related services.
Kavak is a platform focused on online purchases and sales of automobiles, which recently made waves after raising $700 million in funding to become one of the most highly valued startups in Latin America. Founded in 2016 and based in Mexico City, the company had 4,300 full-time staff at the time of closing the study — before that recent injection of funds.
The company is present in Argentina and Brazil and plans to expand in the region with the new funds.
Only formed in 2019, Jüsto is an online supermarket that managed to raise $100 million in investment in 2021 to expand its presence in its home country of Mexico, where it has more than 1,000 full-time staff.
Jüsto aims to be the most popular online supermarket in Latin America by 2030, and recently expanded into Brazil with a $40 million investment that saw 300 local staff hired.
Cryptocurrency exchange Bitso was established in 2014 and by the time the study closed had 430 full-time staff. The startup, based in Mexico City, raised $250 million in funding in 2021 and reached a valuation of $2.2 billion.
Recently, the company announced that it had opened accounts to a million more users. This would bring the total number of accounts to three million. The crypto company will also be supporting El Salvador’s Chivo wallet, after the Central American country recently became the first country in the world to make the cryptocurrency Bitcoin legal tender.
Also established in 2014, Credijusto is a fintech in Mexico that provides financial solutions and credit to companies. In 2021, the startup launched an entirely online “alternative credit” solution in conjunction with American Express, with the stated aim of providing entrepreneurs with greater control and visibility over their companies’ expenses.
With the acquisition Finterra of a Mexican bank, Credijusto was the first fintech company to acquire a bank in Mexico. Credijusto announced that it intends to expand into traditional banking and support small- and medium-sized agricultural enterprises (SMEs).
Since being established in 2019, Minu has struck agreements with more than 100 companies to allow their employees to access the on-demand salaries that it offers. Minu’s mobile app allows users to withdraw cash at a similar fee to an ATM withdrawal fee. There are no interest or commissions.
The Mexico fintech company counts approximately 76 full-time staff and has so far attracted investment from tech luminaries including Bill Gates, Mark Zuckerberg, and Jeff Bezos, suggesting it has a lot more success to come.
Homie is a real estate focused startup that was established in 2015 and now has over 100 staff. The company, which is based in Mexico City, facilitates rentals through its online platform. They screen interested parties to organize viewings and supervise every step of renting, including the provision of contracts and due diligence.
The company provides the platform through which renters pay their rent and offers landlords payment guarantees. This not only provides landlords peace of mind but also allows renters convenience. There is no third-party endorsement or deposit required to be eligible.
Another fintech in Mexico that makes the list is Clara, which was only established in 2020 and had raised more than $40 million in funding by August 2021.The startup provides company credit card services. Clara offers two types of VISA credit cards — one aimed at day-to-day company expenses, and an “infinite” card aimed at executives.
Payments are managed via Clara’s online platform, which also includes an expense request feature, and it is already estimated to process more than $50 million in payments annually.
8. Cacao Paycard Solutions
Cacao Paycard Solutons is a fintech in Mexico that offers virtual accounts and bank cards to its users as well as facilitating transactions with all types of other cards.
Established in 2017 and based in Mexico City, the startup provides technology that has been critical to the success of a number of neobanks. Cacao Paycard Solutions is a Mexican startup that has worked with over 30 such companies. It plans to continue expanding its presence throughout Latin America.
Cargamos is a logistics focused startup that promises to deliver goods significantly faster than many other providers, with a maximum delivery time of 11 hours and including deliveries within 35 minutes that other companies complete in up to four days.
Mexico City-based startup Cargamos was founded in 2019. It offers a 24/7 service that includes live chat and instant quotes for delivery. The company offers delivery services to individual customers as well as e-commerce platforms. Recently, $11 million was invested.
Another startup with a financial focus, UnDosTres is a digital platform that facilitates secure payments and mobile phone top-ups. This includes payments for utilities, online gaming, and a variety of other services.
The company was established in Mexico City in 2015 and has over one million app downloads by 2020. It currently employs more 70 full-time employees.
Fintech in Mexico has bright future
The appearance of so many companies focused on financial solutions in this list of the top 10 promising startups in Mexico highlights the rapid growth that the fintech sector has seen in recent years — which has also been witnessed in several other countries in Latin America.
Notably, two of the non-fintech companies that appeared in the list — Kavak and Jüsto — were highlighted by Biz Latin Hub in December 2020 among 3 Mexico tech companies to watch in 2021, along with fintech Konfío.
This list shows that fintech in Mexico is a promising sector of the tech industry and promises a bright future.
Biz Latin Hub can assist you doing business in Mexico
At Biz Latin Hub, our team of corporate support experts has the experience and expertise to provide you with the assistance you need to launch and do business in Mexico. Whether you are interested in finatech in Mexico, or any other commercial sector, our comprehensive portfolio of back-office services includes company formation, accounting & taxation, legal services, and visa processing, among others, meaning we can offer a package of integrated services tailored to your individual needs.
Our teams are located in Latin America and the Caribbean. We currently facilitate investment in 18 countries around the region.
Contact us today Find out how we can support you business.
Or read about our team and expert authors.