Sebastian Kanovich - Powering Emerging Markets Payments - [Founder’s Field Guide, EP. 56]

Rapid Growth

dLocal's rapid growth is attributed to its strategic focus on emerging markets and a commitment to profitability. Sebastian Kanovich emphasizes the importance of concentrating on core operations rather than distractions like funding rounds or PR announcements. He states, "We always focus about doing the things that matter. We weren't out there doing stuff that was ancillary" 1. This disciplined approach, combined with a unique background distinct from typical Silicon Valley companies, has allowed dLocal to build significant enterprise value quickly. Kanovich also highlights the importance of making strategic decisions, such as resisting the temptation to expand into markets like Germany or the UK, where existing solutions are already effective 2.

   

Technology Innovation

Technological innovation is at the heart of dLocal's success, with a focus on creating robust payment infrastructure for emerging markets. Kanovich describes how dLocal provides a single API access point for companies like Google to manage complex payment methods in countries like Brazil 3. He explains, "We give Google one single access point, one single API, and we'll tell them you integrate into this API and you're going to have access to your user wants to pay with installments" 3. This approach not only simplifies transactions but also ensures compliance with local tax regulations and fraud prevention. Additionally, Kanovich advises API businesses to focus on standardization and avoid competing with their customers, emphasizing the importance of providing infrastructure that empowers rather than competes with clients 4.