dLocal, a cross-border payment platform, recently raised $150 million in a funding round that closed in September, according to a report by Bloomberg. The funding was led by Alkeon Capital and supported by several other investors, including BOND, D1 Capital Partners, and Tiger Global.
The funding round marks a significant milestone for dLocal, which has seen tremendous growth in recent years. The company provides a platform that allows merchants to accept payments from customers in emerging markets, including Latin America, Africa, and Asia. Its technology supports more than 300 local payment methods, including credit and debit cards, bank transfers, and mobile wallets.
The new funding will enable dLocal to expand its presence in existing markets and enter new ones. The company has already established a strong presence in Latin America, where it serves more than 450 merchants, including Uber, Shopify, and Zara. With the new funding, dLocal plans to expand its services in the region and enter new markets, such as Southeast Asia and the Middle East.
In a statement to Bloomberg, Sebastian Kanovich, the CEO and co-founder of dLocal, said: “We are very excited to partner with Alkeon and our existing investors to continue our mission of democratizing access to payments for global merchants. With this funding, we plan to expand our team and product offerings to meet the growing demand for our services around the world.”
Challenges and Opportunities
dLocal operates in a highly competitive and rapidly evolving industry, with new players entering the market regularly. However, the company’s focus on emerging markets and its ability to support a wide range of local payment methods has given it a competitive edge. Moreover, the COVID-19 pandemic has accelerated the shift towards digital payments, creating new opportunities for companies like dLocal.
However, dLocal also faces several challenges, including regulatory compliance, fraud prevention, and cybersecurity. As the company expands its operations, it will need to navigate complex regulatory environments in different countries and ensure the security of its payment systems.
dLocal’s recent funding round is a testament to the company’s success in the cross-border payments space. The company’s ability to support a wide range of local payment methods and its focus on emerging markets has given it a competitive advantage in a rapidly evolving industry. With the new funding, dLocal is well-positioned to expand its presence in existing markets and enter new ones, while also addressing the challenges that come with operating in a global market.