dLocal, the Uruguayan fintech startup that provides cross-border payments solutions for businesses, has raised $150 million in its latest funding round in September. The Series D funding was led by Alkeon Capital Management, with participation from BOND, D1 Capital Partners, and Tiger Global. With this funding, dLocal’s valuation has reached $5 billion, making it one of the most valuable fintech startups in Latin America.
This development has been received positively by the financial media, with Bloomberg describing it as a “boon for cross-border payments.” Here’s why.
The Growing Importance of Cross-Border Payments
In an increasingly globalized world, cross-border payments have become an integral part of doing business. Companies need to be able to pay suppliers, contractors, and employees in different countries quickly and efficiently, and this is where fintech solutions like dLocal come in.
dLocal’s platform allows businesses to accept payments in over 30 countries across Latin America, Asia, and Africa, and settle them in their preferred currency. This is particularly important for small and medium-sized enterprises (SMEs), which may not have the resources to set up their own payment infrastructure in each country they operate in.
The COVID-19 pandemic has only accelerated the shift towards digital payments and e-commerce, making cross-border payments more important than ever. According to a report by Accenture, the pandemic has “created a surge in cross-border e-commerce that is set to continue, with digital sales expected to grow to $6.9 trillion by 2025.”
dLocal’s Unique Value Proposition
dLocal’s success can be attributed to its unique value proposition, which is focused on emerging markets. While many fintech companies concentrate on developed markets like the US and Europe, dLocal has positioned itself as a leader in markets that are often overlooked.
By building relationships with local payment processors, dLocal has been able to create a network of payment options that are tailored to each market. For example, in Brazil, dLocal’s platform allows businesses to accept payments using Boleto Bancário, a popular payment method that involves printing out a payment slip and paying at a bank or convenience store. In India, businesses can accept payments using UPI, a mobile payments system that is rapidly gaining popularity.
This approach has helped dLocal become a trusted partner for businesses that want to expand into new markets, but don’t have the local knowledge or resources to do so on their own. With its latest funding round, dLocal plans to expand its platform further and reach even more markets.
dLocal’s success in raising $150 million in its latest funding round is a testament to the growing importance of cross-border payments and the unique value proposition that dLocal offers. By focusing on emerging markets and building relationships with local payment processors, dLocal has positioned itself as a leader in a rapidly growing industry. As cross-border e-commerce continues to surge, companies like dLocal are well-positioned to help businesses navigate the complexities of global payments.