Latin American Technology Stocks to Drive the Outperformance of the Asset Class in the Coming Years
LIMA, Peru--Latin America's investment landscape has evolved, showcasing diverse financial markets and rising domestic consumption. Credicorp Capital highlights the investment theme termed The Great Catch Up, where local companies emulate global success strategies. Mercado Libre, valued at $60 billion, leads regional growth. E-commerce in Latin America is set for rapid expansion, bolstered by increased smartphone usage, now projected at 80% by 2025. Over $10 billion has been raised by key e-commerce players for enhancements in delivery and fintech services, indicating strong future adoption.
- Mercado Libre's market cap reaches $60 billion, a 4,000% rise since 2007.
- E-commerce growth fueled by smartphone penetration expected to rise from 26% in 2014 to 80% by 2025.
- Over $10 billion raised by key players for logistics and fintech development.
- Increased internet usage in Latin America, with users spending 43% more time online than the global average.
- None.
LIMA, Peru--(BUSINESS WIRE)--Latin America’s investment landscape has undergone a dramatic metamorphosis over the past decade. Within the region’s top economies, financial markets are increasingly diverse, domestic consumption is rising and innovation plays a leading role in growth. The region boasts a vibrant and entrepreneurial economy, creating opportunities for investors with a long- term view.
“Today, the most important investment theme is what we would describe as The Great Catch Up, where the region’s newly created behemoths are replicating the same successful strategies of some of the world’s best companies. The cases are numerous, but front and center is Latin America’s largest listed company today, Mercado Libre (MELI US) at a market capitalization of
In the region, the e-commerce industry enjoys clear skies for a faster-than-expected growth ahead. There is an overwhelming acceptance of ecommerce and super-apps, which begins due to an innate desire of Latin Americans to be connected, which can be seen by the
Another factor that should lead to further adoption and growth of ecommerce in Latam is the investment that is currently being deployed. Over the past 3 years, the leading e-commerce players: Mercado Libre, Magazine Luiza, and Falabella, have raised capital in the market, surpassing the
This is what Credicorp Capital refers to as a catch-up story, one that does not have to go through the whole development cycle and instead leapfrog to the top of tech food chain in a shorter period of time. There are many similar stories in the tech space of Latin America and despite their recent success this trend remains unknown to most investors. “We are certain that we could see a sustained rally in Latin American equities. But one thing that is for sure is that the rise of e-commerce platforms and super-apps is good enough reason to invest in Latin America,” concluded Santiago Arias.
About us
Credicorp Capital is part of Credicorp Ltd., the leading and largest financial holding company in Peru which is listed on the New York Stock Exchange (NYSE: BAP) and has a market capitalization of USD 20.12 billion*. Credicorp Capital is one of the subsidiaries of the holding Credicorp Ltd., which groups together BCP, Prima, Pacífico, Mibanco, Krealo and Credicorp Capital. It is also a holding company dedicated to providing financial services that arose from the consolidation of three leading Latin American corporations in Colombia, Chile and Peru. Today, it has a presence in 5 countries and USD 30.7 billion ** of Assets Under Advisory/Management.
* Source: Credicorp / Information at the end of 2019, considering an exchange rate of USD 3.34
** Source: Credicorp Capital / Information at the end of 2019 (includes assets under custody managed by the Wealth Management team)
