With the recent acquisition of Cornershop, Rappi’s $200M round and Uber Eats continued expansion, Latin America’s last mile delivery market has heated up. In November, Movile’s iFood blew it out of the water by raising another $400M to continue to expand the business. In the past 10 years, over 50% of the region connected to the Internet, creating a booming market for e-commerce and other online businesses. The growth of food delivery startups, especially in Latin America’s biggest markets, has been propelled by this trend. The Brazilian market leader is iFood, with over 6 million users, 1000 employees, and 10,000 independent delivery drivers.
In this episode of Crossing Borders, I sat down with iFood CEO, Carlos Moyses, to talk to him about the delivery market opportunity, iFood’s growth through acquisitions in the early 2010s, building culture across borders, and Carlos’ personal story from finance to startups. Check out this episode to learn why some of the biggest players in Brazil’s startup ecosystem have backed this food delivery business.
Continue reading “Carlos Moyses: How iFood Delivers 11M Monthly Orders & Is Just Getting Started Ep 61”
Horacio Melo and I have been trying to organize a time to do this podcast for a few years and I’m excited to finally be able to share it. Once the Executive Director of Start-Up Chile, Horacio went on to build his own startup – just two months after becoming a Dad for the first time. Horacio knows what it takes to build a great company; after all, he watched and mentored over 1000 startups as they passed through Start-Up Chile. His solar energy company, Solarity, has raised three rounds of investment, starting with US$650K in their seed round, then adding a US$18M in follow on funding.
Horacio can speak to the difficulty of selling an innovative business idea to conservative corporates in Chile and Latin America, despite Chile being one of the best places in the world for solar energy. He also discusses his transition from corporate jobs to entrepreneurship, the importance of culture in building a sustainable startup, and what he learned as Executive Director of Start-Up Chile.
Continue reading “Horacio Melo, Solarity: From Start-Up Chile to Solar Energy, Ep 60”
Walmart’s acquisition of Cornershop for $225M set off a firestorm in Chile. Everyone from politicians to investors, columnists to entrepreneurs has thrown in their two cents.
Why didn’t any Chilean VCs invest, when 2 of the founders were Chilean? The debate got hotter when Oskar and Dani, two of Cornershop’s founders, shared their perspectives on Twitter and in interviews, and a prominent reporter used the acquisition to bash wealthy Chileans.
Some have turned Cornershop into a referendum on wealthy Chilean businesspeople. I’ve written about the Chilean extraction vs. value creation mentality. That’s a part of it. Others have seized on Chile’s conservatism. That’s also a part of it. Others have blamed CORFO, the Chilean government agency that supports new businesses and venture capital. Others blamed Chilean VCs for missing the boat. They also deserve some blame, although a Chilean fund did invest $500k into the Cornershop founders’ previous startup Seahorse, and multiple Chilean angel investors invested in Cornershop.
I got multiple requests for my perspective from entrepreneurs, investors and family offices from around the region. What happened? They also asked why have Magma Partners been the only VC fund in Chile that hasn’t taken CORFO money?
I love CORFO. CORFO created and supported Start-Up Chile, the world-changing program that brought me to Chile back in 2010. It indirectly showed me the opportunity to create Magma Partners in Latin America.
I also love CORFO because it’s made up of well-meaning, smart, dedicated people who are doing their best to change Chile for the better. Thanks to everyone involved. You’ve truly changed my life.
I also love CORFO because CORFO backed funds are blocked from investing in many of the best deals in Latin America. Since 2014, Magma Partners has invested in 42 startups across Latin America. And we found that CORFO blocks much of Magma’s Chilean from at least 40 of our best investments.
Continue reading “Why Magma Partners Loves Corfo But Doesn’t Take Its Money”
As the calendar turns toward April 15th, everyone in the US knows what’s coming: tax day. While the Internal Revenue Service (IRS) has updated their systems, and there are dozens of tax management tech products, many people still have to file via a paper 1040 form that takes 6-8 weeks to process. Compare that to Chile, a less “developed” country according the most of the world, where paying taxes is as simple as logging on to the Servicios de Impuestos Internos (SII, Chilean IRS) website to see all your paychecks and spending from the year. On Chilean tax day, people can immediately if they’ll get a refund and how much it will be, which then shows up in your bank account automatically in 1-4 weeks.
Electronic tax filing systems are not unique to Chile. Colombia, Argentina, and Mexico allow people to pay taxes online or even via app, using a personal identification number like a Social Security number.
However, not all of Latin America is so progressive when the time comes to pay taxes. According to the World Bank, Brazil’s tax policy is one of the most complex in the world, so much so that doing taxes requires over 2000 hours per year, compared to 291 in Chile, 311 in Argentina, and Colombia with just 239. Latin American countries also have Value Added Tax (IVA in Spanish) that you have to pay monthly included in their totals.
Across the region, government ministries are rapidly introducing new methods to simplify and speed up the taxpaying process. Here are some of the ways Latin American governments are working to improve the often-painful process of paying your taxes.
Continue reading “How Latin America is Using Technology to Reform the Tax-Paying Process”