He dLocal founder, Sergio Fogel, return to the first unicorn of Uruguay to perform as co-chair, amid the complaints of alleged fraud made by the government of Argentina, which resulted in a considerable drop in the company’s shares in the wall street stock market, which now hint at a recovery.
Through a communiqué, which bears the signature of the CEO Sebastián Kanovich and co-chairman and COO Jacobo Singer, The company also appointed Fogel as Director of Strategy and highlighted that he had been serving as an “active member” of the Board of Directors, “providing strategic vision and practical support”. The decision comes a few days after the firm is charged in Argentina for money laundering, for alleged fraudulent maneuvers.
On his appointment, Fogel contributed: “I am delighted to assume this executive role to continue to support a dynamic and growth-focused leadership team as we guide the dLocal business through the next phase of growth.” In addition, the firm valued his “extensive experience as a successful serial entrepreneur in the technology space with More than 30 years of leadership experience.
The new co-president affirmed that “dLocal’s development since its foundation shows the dedication and exceptional efforts of all our teams” and, regarding what is to come, he predicted: “I am confident that the future will be bright with us at the helm.”
Meanwhile, Kanovich was “excited” by Fogel’s new role to “grow the business” of dLocal, valuing his “proven leadership skills, experience and commitment.” In addition, he noted, “Our opportunity to connect global merchants with users in emerging markets is significant.”
dLocal’s gratitude for the contribution of its shareholders
Separately, dLocal announced that “certain key shareholders” have purchased approximately $160 million of the Company’s Class A common shares in open market trading since last December. In the statement, they reported that there were 100 million dollars from General Atlantic and approximately 60 million dollars from Sergio Fogel, Andres Bzurovski and Eduardo Azar.
“I am deeply grateful for the extraordinary show of support from our founding shareholders and from General Atlantic, highlighted Kanovich and valued “their financial commitment and their constant dedication” which demonstrates, in their opinion, “confidence” in the long-term future of the company. In fact, shares traded higher on the Nasdaq during trading on Wednesday, recovering 5.32% to close at $10.50.
dLocal pledged to collaborate with Argentina
The fintech was accused by the government of Argentina for an alleged overbilling of digital services for at least 400 million dollars, with the supposed purpose of evading foreign exchange. For this reason, from dLocal they were willing to collaborate and “respond to each and every one of the requests for information.”
The investigation is promoted by the Argentine prosecutor Guillermo Marijuan and the judge in charge of the case, Maria Eugenia Capuchettiinstructed the prosecutor Ramiro Gonzalez to continue with the cause that tries to determine if there was a crime for the overbilling of digital services.
Source: Ambito
