Focusing on everyday issues that effect a large quantity of people who live in close proximity is a proven recipe for startup success. It’s good news for startup founders that most people in Latin America live in cities!
Startups across Latin America use technology to help urban populations meet basic needs of living, moving, and eating. Latin America is not a easy place to live, but these startups are helping people live better lives -allowing them to save time and money.
Levels of Urbanization in Latin American countries:
Source: United Nations Population Division. World Urbanization Prospects: 2018 Revision.
Peru’s urban population increased from 63% in 1978 to 78% in 2017, according to the World Bank.
Due to limited affordable housing options, people live far from their place of work, often criss-crossing the city to get from home to work to school and back.
In a large city like Lima, you can’t go a day with out someone commenting on the debilitating traffic congestion – or great food options, for that matter.
Startups are taking on these issues head on and proving real, scalable solutions.
Three key trends:
Living (proptech and fintech) – Startups help people find housing and access financial products that make purchasing a home more accessible.
Moving (mobility) – Urban areas with insufficient public transportation and unsafe taxis have benefited from the entrance of mobility and micro-mobility startups. New solutions are improving mass transportation as well.
Eating (Food and foodtech) – Getting food from farm to plate is hard. Food startups are the addressing important points of the entire value chain of producing food products and providing them to individuals in an efficient manner.
Here are some examples in Peru:
These startups in Peru help people in Lima meet basic needs. Lima’s population of almost 10 million people will provide ample opportunity for them to achieve significant scale.
Startups in Peru that are addressing the needs of local urban populations.
Global and local investors are taking notice and driving capital toward startups in these three areas. In fact, a recently launched venture capital fund called Arpegio has a investment thesis to “look for companies that are using technology to solve problems anywhere along (and around) the global food supply chain.” Arpegio was lauched by Gonzalo Perez, a Peruvian founder who most recently led startup logistics Bend.
In July, Lima will host a ProPtech Latam Workday to highlight innovations in the real estate sector and how startups are contributing to positive change.
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