In recent years we have seen the constant interest of Chilean startups in expanding their operations to the Mexican market, generating ambitious capital raises and projects for which conquering this market is key, but, ultimately, what makes it so attractive?

Mexico is currently the largest Spanish-speaking country with more than 128 million inhabitants (more than 6 times the population of Chile), which also places it in tenth place in terms of population worldwide, with a per capita income of US$20,820 (1) vs. Chile's US$26,513 (1). Mexico's GDP amounts to US$2,685,253 million (1), making it the thirteenth largest economy in the world. 

This, together with an idiosyncrasy similar to that of Chile, without language barriers, and the prestige of the good professional performance of Mexican businessmen, make this market tremendously attractive for growing companies or those that require a larger market scale.

Fintechs & Starups

According to data from ProChile, there are currently around 120 Chilean companies installed in Mexico. Most of them focus on education, healthtech and fintech. SimpliRoute, Cornershop, Buk, U-Planner, Instacrops, Cotalker, Fintual, Xepelin and Chipax are just some of the companies operating there.

What does Mexico offer to Fintech & startups?

One of the main reasons for Fintechs & Starups to choose Mexico as a country for expansion is the size of the market. Although many companies have a different nature or target market, entering the market of a larger country allows them to access a larger number of people and better visibility in the world of entrepreneurship. 

In addition, it is widely known that Mexico and its inhabitants have a well internalized investment culture, considering that in the last 3 years Venture Capital funds in this region have grown 86% (source: El Economista MX) with the main trend being investment in Fintech and/or startups.

Proximity to the United States

Another of Mexico's differentiating aspects is its physical and cultural proximity to the United States, as there is a large Latino population in cities such as Miami and Los Angeles. But it is not an easy bet. Many start-ups prefer to dominate the Latin American market and then jump into the U.S. industry. Others, however, prefer to bet big and test their model in the United States.

On the other hand, Mexico, unlike Chile, Peru and Colombia, has the best venture capital market among Spanish-speaking countries. But not all are bright spots. Multiple Chilean executives who have a presence in Mexico mention that one obstacle has been bureaucracy. Unlike Chile, many say, Mexico is characterized by slower legal processes that require study and patience.