Technology companies are going through a boom period that has put them in the sights of large companies, who now see the opportunity to expand into new markets or consolidate themselves even more in areas where they already have a presence.
In recent weeks, e-commerce giant Amazon announced the purchase of Brazilian last-mile distribution company Total Express, representing the company’s first inorganic move in Latin America’s largest market, in an effort to accelerate its logistics capacity and boost the growth of services such as Amazon Prime.
Another recent case is iFood, a Brazilian meal delivery company, which invested in Rio Grande do Sul Anota Al, a local artificial intelligence startup focused on restaurant order automation on apps such as WhatsApp, Messenger, and Instagram.
This trend is because acquiring local companies is more viable for the expansion plans of large transnationals into other countries since it is easier and faster in terms of adapting to the characteristics and behavior of those markets, as well as to the legislation of the country in question.
Companies are no longer focused only on developing e-commerce, but on how to personalize and direct their offer to each customer. The challenge is to reach a consumer who is looking for better experiences, in less time and in a context where inflation is reducing people’s purchasing power.
Competitors must therefore focus on providing users with a seamless transition between all these channels.
Latin America alone offers a universe of more than 300 million shoppers, reflecting significant growth potential. By 2025, the figure could grow by more than 25%, with online retail sales projected to reach US$160 billion, according to Statista figures.
While Brazil and Mexico as the two most important markets in terms of size and population, which leads them to compete for the spotlight, representing 31% and 28% of the e-commerce market, respectively, as a result, the companies have carried out around 1,130 mergers and acquisitions between January and June of this year.
Keep reading: The mergers and acquisitions market in Mexico is modernizing.