#006: Nubank smashes earnings estimates, and Elon drops by
Brazil has a big week of announcements, launches, and high-profile meetings
Hey technopolists,
The hot news this week is all about the BBC - Brazil, Brazil (again), and Colombia. We hear more about big tech, and Elon makes his Technopoly debut.
Let’s get into it.
What’s hot
🏦 Nubank posts best quarter ever. On Tuesday, Nubank released their Q1 2022 results that smashed expectations. Quarterly nearly tripled to $877mn compared to the prior year, beating analyst estimates by 40%. The strong growth was driven both by user volume (adding +5.7mn customers, approaching 60mn in total) and value (increasing average revenue per user from $3.5 to $6.7). Overall losses also shrank from $49mn to $45mn, while costs per user declined 14%. These results seemed to temporarily quell investor fears that the May 17th lockup end date would trigger a mass employee stock selloff, but Nu’s share price has still dropped over 5% since Monday’s announcement. (Reuters, 224 words)
🚀 Bitso goes big in Colombia. The Mexican cryptocurrency unicorn launched in Colombia last week, its fourth country of operations after Mexico, Argentina, and Brazil. The move follows a pilot that Bitso conducted in tandem with the Colombian government, and to commemorate the launch, CEO Daniel Vogel met with Colombian President Ivan Duque; Duque even publicly purchased an NFT of a Colombian artist to mark his endorsement. According to reports from Chainalysis, Colombia boasts the third-largest crypto market in LATAM (behind Mexico and Brazil) with $70bn in payments processed every month. (IT Masters, 364 words - Spanish)
🇧🇷 WhatsApp debuts payments in Brazil. In the same week that Meta opened up WhatsApp’s API to developers to encourage WhatsApp add-ons, Meta began testing WhatsApp Pay, a peer-to-peer payments solution, in two of its largest markets, Brazil and India. The new feature allows WhatsApp contacts to send and receive up to $1,000 each month with one click through the app, and no fees are charged on the transfers. The move poses a large threat to upstart fintechs, as the peer-to-peer payments test paves the way for business payments in the future. (Finextra, 109 words)
What’s not
🇨🇷 Costa Rica’s war on cybercrime. Less than two weeks into his new term, Costa Rican President Rodrigo Chaves has officially declared war on the Conti ransomware gang. Conti, which has openly stated its intent “to overthrow the government by means of a cyberattack,” has shut down 27 different government agencies since the attacks began in April. Both sides are in an escalating standoff, as Conti recently doubled their ransom price tag from $10mn to $20mn while the US has stepped in to offer $5-10mn bounties for information leading to arrests. (The Verge, 473 words)
😳 Stagflation concerns. Concerns about stagflation - a phase of flat economic growth and rising inflation - are dominating headlines globally, and LATAM is also at risk. Chile, Peru, Colombia, and Brazil all rank high in stagflation pressure, and according to UBS’ new report, and are all under worse pressure than the UK, US, & Eurozone. Conversely, Mexico is at the lowest risk due to strong underlying growth rates. (UBS, full report)
Stat of the week
According to the World Bank, global remittances are forecast to increase 4.2% in 2022 to $630bn. LATAM is one of the fastest-growing regions in the world and is estimated to comprise 22% of annual global remittances ($143bn). I’ve discussed previously how remittances are a key opportunity for Latin economies.
Here’s a look at the fastest-growing countries:
Source: World Bank via Bloomberg Linea
For the culture
🛰️ Elon meets with Bolsonaro. The controversial tech mogul took a break from stalled Twitter negotiations and sexual harassment allegations to discuss deforestation and rural wifi connectivity with Brazilian President Jair Bolsonaro last Friday. The timing of the meeting piques interest; Bolsonaro, a vocal right-wing populist, has overtly courted Musk in the hopes of bringing Tesla and SpaceX factories to Brazil. Musk’s visit coincides with his recent statement that he ‘can no longer support [the US] Democrats, the party of division and hate’. (Reuters, 255 words)
👩🏽🍳 Colombian chef named best in the world. Leonor Espinosa, owner of the eponymous restaurant Leo in Bogotá, has been chosen as the world’s top chef by the William Reed Business Media company. Espinosa is celebrated as both epicurean and entrepreneur, preparing food that unites Colombia’s indigenous and modern cuisines; the proceeds from her restaurants support the social and economic improvement of indigenous and Afro-Colombian communities. She’ll travel to London in July to receive the award. (Bloomberg Linea, 373 words)
🐦 Follow LATAM tech on Twitter. Looking for good handles to share the latest on startups across the region? Fran Garcia has curated a helpful list of handles that will keep you in-the-know. (Twitter)
🎙️ Sponsored: Music & more by Maven Curation
A word from Gabriel Meizner, LATAM curator at Maven Curation:
Latin America's music scene is as deep and diverse as the people that create and enjoy it, mixing sounds and rhythms that are representative of the spontaneous, joyous character that we bring to each day.
With blasts of Mexican and Argentinian rock, Colombian alternative punk, Amazonian tribal, and Peruvian cumbia, I’ve curated a playlist that takes you on a tour of my highlights. I hope you enjoy!
Maven Curation is a marketplace where you can discover and hire personal curators in music, dining, art, literature, and more. Technopoly subscribers can gain free early access to Maven’s beta by using this link. Head to our website to learn more and meet your new curator.