Bar chart comparing the largest Latin American companies by market cap in 2010 vs. 2021, showing significant disruption with new tech companies entering the top ranks | Sources: Atlantico, CompaniesMarketCap, Latinometrics
LatAm Disruption: Biggest Companies in 2010 vs 2021

Last week’s Nubank IPO is the latest sign of a boom in Latin American unicorns, as a growing number of tech companies are becoming the region’s most valuable and most profitable for investors. As of Friday’s market close, the Brazilian fintech’s market cap became the 6th highest and surpassed all other banks in the continent.

However, it’s also astonishing to see how the market cap of the old players has shrunk to a fraction of what it was. Perhaps the shrinking valuations indicate exciting tech companies’ boom and the replacement of the old monopolies. It’s no wonder money is flowing in to fund startups across LatAm.

These new players have become the favorite in their respective markets, outpacing older industries that dominated the region’s economy. A key example of disruption has been Argentina’s Mercado Libre, which has flourished amidst an exploding demand for e-commerce that’s just beginning.