In recent years, startups in Mexico have managed to position themselves at the height of any international startup. During April 2021, around 400 Mexican startups were registered in various industries. Service software or SaaS companies recorded the most growth, followed by Fintech and e-commerce.
This vibrant ecosystem is supported by a series of programs and initiatives designed to help startups thrive. For example, the Mexican government offers a wide range of tax incentives for startups. In addition, many startups are based in so-called “innovation centers”, which provide access to mentors, investors and other resources. Thanks to these support structures, startups in Mexico have the potential to make a big impact and future growth.
After the period of euphoria characterized by the abundance of liquidity and exceptional valuations that marked the sector in 2021, the after-effects began to manifest last year, aggravated by inflation, the increase in interest rates and the increase in the price of financial resources. This set of circumstances triggered a correction in the market that has lasted until this year, leading to a transformation in the rules that govern the landscape.
But what exactly is a startup and what sets it apart from other types of companies? A startup is a new company or venture that is in the process of developing a product or service. Startups are characterized by their innovative approach to the way they do business and their tendency to take risks. They also have a small team of founders who are passionate about their product or service.
In Mexico, startups are flourishing. According to recent estimates, there are more than 352 startups operating in the country. These startups cover a wide range of industries, from technology to fashion, to food and beverages, having a great impact on the economy: startups in Mexico have created more than 50,000 sources of work in the last five years. With its large talent pool and growing support ecosystem, Mexico is well positioned to continue producing successful startups in the coming years.
There are several factors.
First, Mexican startups are benefiting from an ecosystem that is growing by leaps and bounds. In recent years, several incubators and accelerators have been created that offer emerging companies access to mentors, funding and resources. Companies such as ilab.net they are talent incubators that provide the necessary bases to take off and accelerate the growth of these companies.
Second, the Mexican government has been more vigilant and has been involved in supporting startups. Startups or emerging companies in Mexico and Latin America surpassed a record investment of $15 billion in 2021, according to a report by Endeavor, international entrepreneurship association and through trusts such as Inadem it is possible to access high-impact information, programs, supports and tools to turn ideas into successful companies. The Mexican government has also sought to promote the growth of the business sector in the country, therefore, it has created a handful of programs to support entrepreneurial talent, among which stand out Startup Mexico and the programs such as “Entrepreneurial Capital” of the National Financial (NAFIN).
And third, Mexican startups are innovative. A number of startups focus on developing new technologies in areas such as fintech and agtech. As a result, Mexico is rapidly becoming one of the most interesting startup ecosystems in the world.
Mexican startups have great potential for success, but there are some key factors that must be in place for them to reach their full potential. The first factor is that they must have a clear understanding of the Mexican market. They need to know who their target audience is and what needs they have. The second success factor is that startups need to establish strong relationships with mentors, advisors, and investors. These individuals can provide valuable guidance and support as startups grow and scale. The third factor is that startups must be prepared to adapt and pivot as the market changes. The ability to be flexible and respond quickly to new opportunities is crucial for success in the dynamic Mexican startup scene.
Startups come in all shapes and sizes, from app-based companies to not-for-profit organizations. While some startups are built around a new technology or product, others focus on solving a specific problem. Some startups are even created for the sole purpose of making money for their founders.
Regardless of their objectives, startups tend to have one thing in common: they are all companies that are in the early stages of development. For this reason, startups often rely on outside funding to help them get off the ground. This can come in the form of loans, investments, or grants. Once a startup has secured funding, it can begin to focus on developing its product or service and introducing it to the market. With the right mix of innovation and hard work, any startup has the potential to become a successful business.
Startups come in all shapes and sizes. Some are founded by experienced entrepreneurs who have a clear vision of their business. Others are created by novice entrepreneurs driven by a passion for their product or service. Whatever their origin, all startups share a common goal: to turn their innovative idea into a successful business.
Hay Four main types of startups: technologies, e-commerce, services and content. Technology startups are companies that develop new products or services based on their own technology. E-commerce companies sell products or services online, usually through a website or mobile app. Service startups offer a physical service, such as clothing delivery or dog walking. Content startups create and preserve online content, such as articles, videos or games.
Regardless of the type of startup you're interested in launching, there's one important thing to keep in mind: startups require a lot of hard work and dedication. So if you're not ready for endless sacrifices and getting to work, a startup may not be the right path for you.
If we Mexicans have one thing, it's that we are creative and entrepreneurial. According to statistics from statista.com Mexico City, Monterrey, Puebla, Guadalajara and Chihuahua are the states with the highest number of startups.
The main characteristic of a startup is that it is scalable, it must guarantee rapid growth and enter the market to seek capital and find the right financing for a massive expansion.
Scalability lies in the ability to grow and generate income immediately, increasing production or sales, stabilizing expenses. This is not possible without using cutting-edge technology to effectively find the solution to a problem.
The most successful startups in Mexico have broken with traditional patterns in their segments. Being disruptive is a fundamental part of each of them; from the way they offer their services or products, to the type of marketing strategies that they use to acquire new users.
Let's know a little more about them:
Industry: Logistics and Package Delivery
99 Minutos is a logistics company that specializes in fast and efficient deliveries, offering agile transportation and distribution solutions in Mexico.
Industry: Digital Banking and Financial Services
Albo is a financial platform that offers banking and financial management services through mobile applications, providing modern and accessible solutions in Mexico.
Industry: Travel Technology and Experiences
Around.to is a platform that connects travelers with local guides for authentic and personalized tourist experiences in different destinations.
Industry: Sourcing and purchasing platform for companies
Atrato is a technology company that provides software solutions for the management and optimization of contracts and business agreements.
Industry: Software and Technology Solutions for Businesses
Baubap is a company that offers technological solutions in the field of health, focusing on improving the experience and efficiency in healthcare.
Industry: Online Payment and Fraud Solutions
Bayonet is a company dedicated to the detection and prevention of online fraud through security and data analysis solutions.
Industry: Platform for accessing financial data
Belvo is a fintech company that facilitates the connection and secure exchange of financial data between applications and platforms through APIs.
Industry: Cryptocurrency platform
Bitso is a cryptocurrency exchange platform that allows users to securely buy, sell and manage digital assets in Mexico.
Industry: Check Management Platform
Checktahora is a company that offers technological solutions for the verification and authentication of online identities, ensuring security in digital transactions and processes.
Industry: Beauty and Personal Care
Círculo de Belleza is a company that provides beauty services and products, with a focus on well-being and personal care through its salons and specialty stores.
Industry: Civic Technology and Citizen Participation
Cívica Digital is a company that develops technological solutions for government and citizens, promoting the modernization of public services and citizen participation in Mexico.
Industry: Business Expense Management Platform
Clara is a fintech platform that offers business cards and manages accounts payable.
Industry: Payments and financial solutions for SMEs
Clip is a fintech that provides electronic payment and collection solutions, facilitating secure transactions for businesses in Mexico.
Industry: Car Insurance Platform
Clupp is a platform that offers to insure your car based on the kilometers you travel.
Industry: Healthy food delivery
Comebien is a food delivery and catering service platform, providing healthy and convenient food options in Mexico.
Industry: Online payment platform
Conekta is a fintech company that offers online payment solutions and transaction processing services for companies in Mexico.
Industry: Lawyer Search and Legal Advice Platform
Confiis a platform that connects users with lawyers and provides online legal services, simplifying the search and hiring of professionals in Mexico.
Industry: Banking and Financial Services
Covalto is a company that offers online banking and financial services solutions, providing modern and digital options in Mexico.
Industry: Insurtech
Crabi is an insurtech company that offers car insurance based on driver use and behavior in Mexico.
Industry: Crypto/Fintech
Crecy is a financial technology platform that facilitates investment in cryptocurrencies and digital assets in Mexico.
Industry: Fintech
Creze is a fintech company that provides online financing solutions for consumers and small businesses in Mexico.
Industry: Mental Wellbeing
Cuéntame is a mental wellness platform that offers online therapy and resources for emotional health in Mexico.
Industry: Fintech
Dolarapp is a financial application that allows the monitoring and conversion of currencies in real time in Mexico.
Industry: Personalized Beauty
Envera is the Mexican brand designed for Latin habits, needs and skin based on the benefits of avocado.
Industry: Health Care
Eva is a health and wellness platform that offers medical and comprehensive care services to women in Mexico.
Industry: Fintech - Revenue-based e-commerce financing
Fairplay is a fintech that offers income-based financing for e-commerce businesses in Mexico.
Industry: Fintech
Finerio Connect is a financial technology platform that allows users to manage their personal finances and connect bank accounts in Mexico.
Industry: Lending
Finvero is a company that provides online lending and financing solutions for small and medium-sized businesses.
Industry: Proptech
Flat.mx is a proptech platform that simplifies the sale of properties by offering immediate purchase offers.
Industry: Fintech
Flink is a fintech that offers mobile banking and investment options for young people.
Industry: Fintech
Fondeadora is a financial platform that offers digital banking services and financial management tools.
Industry: E-commerce
Gaia Design is an e-commerce business that specializes in design and home decor products.
Industry: Fintech
GuruHotel is a fintech that provides technological solutions for hotel and lodging management.
Industry: Foodtech (CPG)
Heartbest Foods is a foodtech company that produces and distributes healthy and natural foods.
Industry: Software
Heru is a software company that offers solutions for tax management and optimization.
Industry: Fintech
Holacasa is a fintech that provides technological solutions to get you closer to the best mortgage credit.
Industry: Proptech
Homie is a proptech company that offers online rental and residential property management solutions.
Industry: SaaS/Logistics
iVoy is a logistics platform that provides package and merchandise delivery and distribution services.
Industry: Retail
Jüsto is a retail startup dedicated to the delivery of fresh, quality food products through digital channels.
Industry: Fintech
Kapital is a fintech that provides online financing and personal loan solutions.
Industry: Automotive
Kavak is an automotive platform that allows you to buy and sell used cars online with inspections and guarantees.
Industry: Foodtech
Kigui is a foodtech company that offers solutions for the preparation and delivery of healthy and convenient meals.
Industry: Insurtech
Kinsu is an insurtech that provides personalized insurance and technology for policy management.
Industry: Fintech
Klar is a fintech that offers digital banking services and credit cards without fees.
Industry: Proptech
Kocomo is a proptech platform that makes it easy to buy and sell properties online with transparent and secure processes.
Industry: Technology/Transportation
Kolors is a technology company in the transportation sector that provides solutions for efficient fleet management and logistics.
Industry: Healthtech/Insurtech
Koltin is a healthtech and insurtech company that offers health management and insurance solutions for people over 60.
Industry: Financial
Konfio is a financial company that provides online loans and financing for small and medium-sized businesses.
Industry: Fintech
Kredi is a fintech that offers online lending and financing solutions for consumers and businesses.
Industry: Fintech
Kubo Financiero is a fintech that provides online lending and financing services.
Industry: Finance
Buy today and pay tomorrow
Industry: E-commerce
Merama is an e-commerce platform that partners with brands to create and manage online stores.
Industry: E-commerce
Meru is an e-commerce platform that provides solutions for the sale of products for your mechanical workshop
Industry: Biotech
Microterra is an agricultural biotechnology company that develops solutions to improve soil quality and crop production.
Industry: Fintech
Milio is a fintech that offers online lending and financing solutions for consumers.
Industry: Fintech
Minu is a fintech that offers employee salary advances and financing options.
Industry: Fintech
MoneyPool is a fintech that provides solutions for the management and administration of personal and group finances.
Industry: Healthtech
Moons is a healthtech company that offers innovative and accessible dental solutions for oral care.
Industry: Proptech
Morada Uno is a proptech company that provides solutions for the rental and management of residential properties.
Industry: Proptech
Neivor is a proptech company that offers technological solutions for the management and commercialization of real estate.
Industry: Fintech
Nelo is a fintech company that provides online lending services and digital financial solutions.
Industry: Logistics
Nowports is a logistics platform that offers supply chain management and optimization services.
Industry: Software
Nubity is a software company that offers solutions for monitoring and managing cloud infrastructure.
Industry: Logistics
Nuvocargo is a logistics company that provides solutions for international shipping and cargo management.
Industry: E-commerce
Orchata is an e-commerce platform that offers products and experiences related to Mexican culture.
Industry: Software/SaaS Development
Pacto is a software and SaaS development company that offers solutions for managing point of sale in restaurants.
Industry: Business
Palenca is a business platform that provides solutions for fleet management and logistics.
Industry: Food/Climate Tech
Perfekto is a foodtech and climate tech company that produces and distributes food in a sustainable way.
Industry: Health
Plenna offers gynecology, pregnancy, psychology, nutrition and more, virtually and in person, in one place.
Industry: Software
PoloPlay is a software platform that offers solutions for the digitization of restaurants
Industry: Proptech
Pulppo is a proptech company that provides solutions for property management and administration.
Industry: E-commerce
Quinio is an e-commerce platform that offers products and solutions for the digital market.
Industry: Fintech
R2 is a fintech that provides technological solutions for the management and analysis of financial data.
Industry: E-commerce
RetryPay is an e-commerce platform that offers solutions for the recovery of abandoned carts and lost sales.
Industry: Fintech
Reworth is a fintech that offers solutions for optimizing rewards and loyalty programs.
Industry: Fintech Startup
Rocket.la is a fintech startup that stands out in the financial field, possibly offering innovative solutions in the financial field.
Industry: Saas/HR/Software
Runa HR stands out in the SaaS/HR/Software industry, providing solutions for efficient human resource management.
Industry: Proptech entertainment
Scouter focuses on proptech entertainment, providing solutions for finding and managing locations.
Industry: Logistics
SkyDropX specializes in logistics, offering delivery and distribution services for packages and goods.
Industry: Healthtech/Insurance
Sofía is a proposal in healthtech/insurance, offering solutions in the field of medical care and health insurance.
Industry: Logistics and Fintech
Solvento operates in the logistics and fintech industries, providing financial and logistics solutions.
Industry: Fintech
Stori is a fintech that offers digital financial services.
Industry: Financial Technology
Sway Compass operates in financial technology, offering solutions for personal financial management.
Industry: Taxtech/Fintech
Taxo is dedicated to taxtech/fintech, providing solutions for tax management and compliance.
Industry: Mental Health
Terapify provides online mental health services and resources for emotional well-being.
Industry: Legaltech
Trato operates in legaltech, offering solutions for the management and optimization of contracts and legal agreements.
Industry: Curated Resale Fashion
Troquer is a company dedicated to the curated resale fashion ecosystem, providing solutions for buying and selling high-quality reused fashion.
Ecosystem
Industry: Agrifintech
Verqor is an agrifintech that provides solutions in the agricultural and financial fields, possibly focusing on technology and financial services for the sector.
Industry: Traveltech
Clean mobility ecosystem in Mexico and Latin America.
Industry: Fintech
Vexi is a fintech that offers financial solutions and credit cards without fees, focusing on facilitating access to financial services.
Industry: Edtech
Vinco is an edtech that possibly offers online educational solutions for learning and personal development.
Industry: Traveltech/Fintech
Webookyou is a company that offers booking and travel planning services, providing solutions for organizing tourist experiences.
Industry: Human Resources/Fintech
Worky is an online human resources platform, providing solutions for managing and hiring personnel in companies.
Industry: Business
Yalo is a company that possibly provides technology and communication solutions, possibly focused on customer service and chatbots.
Industry: Mortgage
Yave is a proposal in the financial sector, possibly offering solutions for the management of personal finances and transactions.
Industry: Financial Services
YoCrypto is a cryptocurrency-related platform, possibly providing information and services in the field of digital currencies.
Industry: Fintech
YotePresto is a fintech that provides online lending and financing solutions, focusing on offering financing options.
Industry: E-commerce Fulfillment
Zubale is a company that offers technological solutions for crowdsourcing and the execution of tasks, possibly related to marketing and data collection.
In the last 5 years, venture capital funding in Mexican startups has increased 560%. According to the LAVCA 2021 Review of Tech Investment in Latin America report, in 2019, 91 Mexican startups received $698M in funding; and in 2020, that rose to 94 new companies and $831 million invested; 84 million dollars went to seed startups, 453 million dollars to the former and 268 million dollars to those of the latter.
And, in the second quarter of 2021 alone, Mexican startups saw an injection of $1.3 billion in venture capital dollars. In the third quarter, Mexico saw an investment of $1.45 billion. Definitely, great growth.
This is just the beginning, next year a growth of 65% is expected compared to the previous year. Mexico is considered an open door to all of Latin America and now that things have calmed down after the pandemic (if you can already call it post) the boom in Mexican startups is about to record levels of growth never seen before.
McKinsey & Company, the global consulting firm, describes this situation as follows: “In recent years, startups in Latin America experienced their first major boom, immersed in an environment of unprecedented innovation. They are currently going through their first genuine downward cycle. This up-and-down dynamic requires startups to chart a path to profitability much earlier. If before the focus was on growth, the current dilemma lies in finding the balance between growth and profitability.”
Statistics from the Association for Private Equity Investment in Latin America (LAVCA) reveal that, although venture capital investment funds deployed a total of 15.9 billion dollars (MDD) in the region in 2021, this figure fell to 7.8 billion dollars in the year 2022. However, this last value remains above the levels recorded in 2020 (4.2 billion dollars) and in previous years.
The future of startups in Mexico is promising and is constantly evolving. Mexico has experienced significant growth in the startup ecosystem in recent years, and this trend is expected to continue in the future. Some factors that contribute to the development of startups in Mexico include:
There are more and more investors and venture capital funds interested in supporting Mexican startups. In addition, there are government programs and accelerators that provide financing and resources to entrepreneurs.
Mexico has a young and talented population, with skills in technology, programming and design. This provides a solid foundation for the growth of technology companies and startups.
Mexico is a large and growing market with a growing middle class and a growing adoption of technology. This creates opportunities for startups in a variety of sectors, such as fintech, healthcare, education, e-commerce and more.
The startup ecosystem in Mexico has matured and has become more collaborative. Events, conferences and meetings are organized to promote collaboration and the exchange of ideas between entrepreneurs, investors and technology experts.
Despite the opportunities, startups in Mexico still face regulatory and bureaucratic challenges that can hinder their growth. However, the government is expected to work on simplifying these processes.
Many startups in Mexico are focused on social innovation and seek to address local and global problems, such as inequality, poverty and sustainability.
The future of startups in Mexico depends to a large extent on how existing challenges are addressed and on how collaboration and investment in the entrepreneurial ecosystem are encouraged. If startups continue to be supported and barriers are overcome, Mexico has the potential to become an important center of innovation and entrepreneurship in Latin America.
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