Fireside Chat, Interview
dLocal CEO Sebastian Kanovich: The $8BN Company You Might Not Know | 20VC #926
- The company aims to transition into the primary financial services provider for emerging markets over the next five years, expanding its scope from current pay-in and pay-out services to include issuance and global coverage beyond its existing footprint of 35 countries.
- Strategic expansion targets 60 markets in the distant future rather than the immediate next quarter, with each regional entry contingent on a deep understanding of local regulatory frameworks and payment behaviors.
- Long-term operational philosophy centers on owning the business for 100 years, utilizing an IPO completed in 2021 to enhance customer perception and financial transparency while shifting from short-term thinking.
- Growth will rely on small, high-performance teams to drive ownership and rapid iteration, with systems and structures expected to break frequently during scaling and require constant replacement.
- Recruitment strategies will balance headquarters culture carriers with local talent to ensure cooperation and deep local understanding, while avoiding the addition of "60 markets in the next quarter" due to the necessity of localizing operations.
- The organization will maintain a low-ego culture where titles are temporary and roles shift based on need, alongside a continued prioritization of frugality despite receiving $50-100 million in investment.
- Public market dynamics, including quarterly reporting and the significant role of banks and advisors, have forced a new level of strategic thinking not previously required as a private entity.
- Customer signals, such as repeated requests for Africa, APAC, or India, will consistently guide expansion decisions, ensuring that product development aligns with actual market demands.
- Leadership expects to face challenges in adapting to reality changes and scaling phases, maintaining a "healthy level of insecurity" to avoid the stagnation that comes from feeling comfortable or believing one knows everything.
- Risks include the difficulty of retaining company culture during rapid growth, the potential for team members to lack the capacity for the next scaling phase despite their own beliefs, and the pressure to avoid ego-driven decisions after mistakes.
- Future plans include adding new products and expanding into more places globally, with the current position viewed as only the beginning of a journey to serve the whole world in the payments sector.