dLocalthe first Uruguayan unicorn, will pause its expansion plans and focus on strengthening existing operations in more than 40 countries, while seeking to recover its good image amid several complaints against it in recent months.
The executive director of the company dedicated to managing digital payments, Pedro Arnthinted in an interview with Reuters that there will be a new phase for the fintech. “We believe now is a phase to pause and strengthen our operations,” she said, adding that markets like Nigeria, South Africa and Egypt They were showing strong growth.
“We could add some countries if there are specific demands,” highlighted the former CFO of Free market that joined dLocal last August in an attempt by the company, which is listed on Nasdaqfor renewing its image.
Founded in 2016, dLocal operates from Latin America until Asiaand has expanded rapidly since then, but in the last year it has dealt with challenges that have included a damaging report from a short seller and scrutiny of its business in Argentina.
Arnt’s hiring boosted the Uruguayan unicorn’s shares, although they are down about 75% from a high in 2021, when the company began trading on the New York Stock Exchange. There is growing criticism from the investment community that it has grown too quickly, entering markets where management lacks experience.
dLocalwhich offers cross-border payment solutions to companies such as amazon, Meta Platforms and Netflixhad previously been hit by hedge fund allegations Muddy Waters that his accounting books showed numerous discrepancies and also by an investigation in Argentina for funds transferred abroad.
“The company has been the subject of two independent investigations. And I think it’s safe to say that the allegations in the short-term sellers’ report were simply not accurate,” Arnt said. About the investigation of Argentinasaid that for now “there is absolutely no conclusion.”
“Customers’ trust was never lost. We lost zero merchants and that for me is the strongest proof,” he stressed and commented that he bought class A common shares when he joined the company, since his remuneration is related to income. variable.
Arnt declined to comment on whether dLocal aspires to a merger and acquisition operation after speculation in August about a possible sale of the company. The company confirmed its annual revenue forecast of between $620 million and $640 million.
Source: Ambito
