With the new investment, in which early and growth stage investment firm Addition also participated, dLocal is now valued at $1.2 billion, becoming Uruguay’s first unicorn, the company said. Dlocal focuses on cross-border payments for emerging markets.
Additional terms of the deal were not disclosed.
Established in Uruguay in 2016, dLocal said it has been able to achieve “organic growth” and show profitability in each of the past four years. It currently serves 450 merchants in 20 countries, the company said, with a client roster that includes Amazon, DiDi, Nike, Shopify, Spotify, Uber and Visa’s cross-border payments firm Earthport.
“I am extremely proud of what the team at dLocal has achieved since we started serving global e-commerce players four years ago,” said dLocal CEO Sebastián Kanovich.
With the new funding, the company said it plans to further expand globally, aiming to move into 13 new markets including Central America, Africa and Southeast Asia, over the next year and a half.
In addition, it plans to continue to “build and refine” its offerings that aim to “solve critical pain points for global merchants seeking to serve emerging market consumers.”
“We are excited to support dLocal as it continues to develop innovative local-payment solutions in the emerging markets,” said Martín Escobari, co-president, managing director and head of Latin America at General Atlantic. “We believe strongly in dLocal’s potential as a transformative company in the emerging markets space.”
Luiz Ribeiro, a principal at General Atlantic, is also planning to join dLocal’s board of directors, the company said, adding that General Atlantic has been around the past four decades, helping other fintech companies such as Ant Group and Santander Asset Management grow globally.
Kanovich added that dLocal is making efforts to assist “those in emerging markets connect to e-commerce, building reliable payment technology tailored to specific local needs, constantly improving our products and growing our global footprint.”
Recent examples of dLocal partnering with other ecommerce brands to achieve its business goals include a partnership with Spotify Premium unveiled on Sept.1 that gave users in Argentina, Chile, Colombia, Peru and Mexico a way to purchase their subscriptions with cash and bank transfers. The company also revealed a collaboration with Google Pay on April 28 that made the digital wallet compatible with dLocal’s payment offerings, giving merchants across emerging markets in Latin America, Asia-Pacific, the Middle East and Africa the ability to accept Google Pay easily.
DLocal is set to take a share in the e-commerce sales industry in Latin America, which is estimated to rise 19.4% to $83.63 billion in 2020, despite the region suffering from a “precarious economic situation,” according to research firm eMarketer. The firm revised its estimates to be 7 percentage points higher than its previous forecast in the fourth quarter of 2019 due to the coronavirus pandemic lockdown prompting a rise in online shopping.