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At a Glance
dLocal, an Uruguayan cross-border payments app, has just raised about $150 million. Currently, it stands at a $5 billion valuation which is about four times its value from seven months earlier, i.e., $1.2 billion. The company had first secured about $200 million seven months before. This five-year startup has therefore managed to quadruple its value in less than a year. Alkeon Capital led the latest round. It also included participation from those companies that led its previous funding round, including BOND, D1 Capital Partners, and Tiger Global. When General Atlantic led the round, which had closed last September, it made Uruguayan-based dLocal Uruguay’s first unicorn by taking its evaluation to about $1.2 billion. It is also amongst Latin America’s highest valued startups. The startup allows global enterprise merchants with billions of emerging market consumers ranging in 29 countries of Latin America, Africa, the Middle East, Asia Pacific region.
More than 325 global merchants, including SaaS companies, e-commerce retailers, online travel providers, and other marketplaces, accept and use dLocal and accept over 600 local payment methods. This platform can also be used to easily issue payments to their agents, sellers, and contractors. Some of these Uruguayan-based startup customers include the likes of major Tech giants like Microsoft, Spotify, TripAdvisor, Uber, Zara, Dropbox, Booking.com, Amazon, MailChimp, GoDaddy, among others. After the recent round, which increased its valuation to now $5 billion, the company has announced Sumita Pandit to be the COO. Sumita Pandit has work experience in Goldman Sachs and has also been the former global head of fintech and managing director for JP Morgan. About the new hiring, the dLocal CEO Sebastian Kanovich released a written statement. He said, “Sumita is a highly respected and accomplished fintech investment banker, and she’s played a pivotal role advising some of the world’s most successful fintech companies as they’ve scaled to become global leaders.” The previous COO of the firm, Jacobo Singer, is now promoted to the post of the President of dLocal.
With this new funding, the company aims to enhance its technology and expand its scope to more countries. The partner of Alekeon General, Deepak Ravichandran, believes that now that the markets are emerging, this can allow faster growth opportunities in digital payments. In a written statement, he stated that “However, as global merchants look to access these markets, they are often faced with a complex web of local payment methods, cross-border regulations, and other operational roadblocks, dLocal’s unique platform empowers merchants with a single integrated payment solution, to reach billions of customers, accept payments, send payouts, and settle funds globally.”