In recent years, we have seen constant interest from 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 six times the population of Chile), which also ranks it tenth in terms of population worldwide, with a per capita income of US$20,820 (1) compared to US$26,513 (1) in Chile.  Mexico's GDP amounts to US$2,685,253 million (1), making it the thirteenth largest economy in the world. 

This, combined with a culture similar to Chile's, without language barriers, and the prestige of Mexican entrepreneurs' professional performance, makes this market extremely attractive for growing companies or those requiring a larger market scale.

Fintechs & Startups

According to data from ProChile, there are currently around 120 Chilean companies operating 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 those operating there.

What does Mexico offer Fintech & startups?

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

Furthermore, it is widely known that Mexico and its inhabitants have a well-established investment culture, considering that venture capital funds in this region have grown by 86% in the last three years (source: El Economista MX), with the main trend being investment in fintech and/or startups.

Proximity to the United States

Another distinguishing feature of Mexico 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 before launching themselves into the US industry. Others, however, prefer to go 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 it's not all good news. Many Chilean executives with a presence in Mexico mention that bureaucracy has been an obstacle. Unlike Chile, many say, Mexico is characterized by slower legal processes that require study and patience.