Unicorn Companies in Argentina

Unicorn Companies in Argentina in 2024

By Aashish Pahwa
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Argentina's journey into the unicorn club is a story of creativity and success against the odds. Despite economic challenges, Argentine startups have flourished, making a mark on the global tech scene. This journey began with MercadoLibre, often called the "Amazon of Latin America," which showed that international success was possible from Argentina.

As of 2024, Ualá stands out as the most prominent unicorn in Argentina, valued at $2.45 billion in 2021. Argentina's startup scene is diverse, covering areas like e-commerce, agtech, and blockchain, and is supported by a wealth of tech talent and helpful government programs.

Let's take a look at the unicorn companies in Argentina and see how these innovative firms continue to grow and shape the tech industry in Argentina.

Rundown

S.No
Name
Valuation
Date Joined
City
Industry
1
Uala
$2.45B
2021-08-13
Buenos Aires
Financial Services

List of unicorn companies in Argentina

Ualá

Uala

  • Valuation: $2.45B
  • Industry: Financial Services
  • Investors: Soros Fund Management, Ribbit Capital, Monashees+
  • Unicorn Milestone Date: 8/13/2021

About

Ualá is an Argentine fintech unicorn founded in 2017 by Pierpaolo Barbieri. As one of the prominent unicorn companies in Argentina, it offers a mobile banking app and prepaid Mastercard to provide accessible financial services, aiming to improve financial inclusion in Latin America. Ualá achieved unicorn status in 2021 with a valuation of $2.45 billion.

Target Audience

Ualá primarily targets the unbanked and underbanked population in Latin America, especially in Argentina, Mexico, and Colombia. This includes young people (as young as 13 with parental consent), small merchants, and entrepreneurs who lack access to traditional banking services.

Business Model

Ualá operates on a freemium model, offering basic services for free while generating revenue through transaction fees and value-added services. The company provides a free prepaid Mastercard linked to a mobile app, allowing users to conduct various financial transactions. Ualá earns revenue by:

  • Charging a commission (around 4.9%) on credit card transactions and payment links.
  • Offering complementary services like "Empretienda," an e-commerce platform for small businesses, retaining 4.4% of each transaction.
  • Providing additional financial products such as loans, investments, and insurance.

Key Offerings

  • Prepaid Mastercard linked to a mobile app
  • Money transfers between users and bank accounts
  • Bill payments and service recharges
  • Personal financial management tools
  • Small business commerce solutions (e.g., Empretienda)
  • Credit services
  • Investment options
  • Insurance products

Key Management

  • Pierpaolo Barbieri - Founder and CEO

Investment Timeline

  • 2018: $10 million Series A round
  • 2018: $34 million Series B round led by Goldman Sachs Asset Management
  • 2019: Undisclosed investment from Tencent
  • 2019: $150 million Series C round led by SoftBank Latin America Fund and Tencent
  • 2021: $350 million Series D round, reaching unicorn status with a $2.45 billion valuation
  • 2022: Announced plans to invest $150 million over 18 months for expansion in Mexico and Colombia