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Brazil is currently experiencing a significant surge in the startup sector. With 1.65% of global tech investments and 40% of all investments in Latin America, the country stands as a formidable force in the tech landscape. In 2021, global investments in information technology, which includes software, hardware, and services, amounted to $2.79 trillion. Brazil ranked tenth globally with an investment of $45.7 billion and took the lead in Latin America, with a total investment of $115 billion.
The term “unicorn” was popularized in 2013 by American venture capitalist Aileen Lee. It denotes startups valued at a minimum of $1 billion. To be categorized as such, three crucial criteria must be met: technological innovation, scalability, and rapid growth. Currently, out of 13,465 registered startups in Brazil, 16 have achieved this esteemed status, according to StartupBase.
Though only 16 Brazilian companies are presently deemed unicorns, several emerging tech enterprises show promise to reach this mark in the near future. Their potential is evident through their market growth, user numbers, and escalating market value. To give some perspective, successful Brazilian unicorns like Ifood, Quinto Andar, Creditas, and Wild Life took between 6 and 8 years to achieve a market value of one billion dollars. Here, we present a list of Brazilian startups that may replicate this feat:
Alice
The health-focused startup Alice secured a whopping $127 million in an investment round led by Softbank in 2021, marking the highest funding received by any health startup in Latin America. With over 6,000 users and a venture into corporate health plans, Alice is a strong contender for Brazil’s next unicorn.
Cora
Launched in October 2020, Cora has already amassed 130,000 clients, including small-to-medium enterprises and solo entrepreneurs. This fintech offers corporate accounts and credit cards specifically for businesses.
Descomplica
As one of Brazil’s premier online education platforms, Descomplica gained immense importance during the pandemic’s push for digital learning. The platform engages 5 million users monthly across various subjects. Just in its postgraduate segment, there are 30,000 students. Last year, the company secured over R$450 million in investments and has made substantial improvements to increase revenue and penetrate new markets. The anticipation is that it will soon join the unicorn club, potentially reaching a value of one billion dollars.
4blue
Established in 2009, 4blue is a financial consultancy startup targeting small and medium-sized businesses. Beginning with a modest capital of less than R$50 meant for business cards, it now provides online solutions for SMEs globally. With a track record of impacting over 4,000 individuals through consultancy, training over 30,000 through its courses and tools, and reaching 33 million with free content, 4blue shows immense promise. With clients from every Brazilian state and over 15 countries worldwide, 4blue could well be on its way to achieving unicorn status in the near future.
Kovi
This car-rental startup announced in August that it had raised $100 million in an investment round and is now eyeing international expansion. With a current fleet of 12,000 vehicles and approximately 10,000 users across Brazil and Mexico, Kovi has substantial prospects to become a unicorn, particularly through international growth.
These startups exemplify the innovative spirit and drive of Brazil’s tech industry. As they continue to grow and push boundaries, the world watches closely to see which will be the next to join the elite unicorn club.
