Mexico, the new market for Colombian startups
Colombian startups have found in Mexico an option to improve their growth. They include companies in the industrial and transport sectors, software and IT services, as well as companies dedicated to offering financial and communications services. This commercial expansion is presented as a lode to stimulate the relationship between the two American nations.
According to data presented in the Invest in Bogota report, during the past year 2021 alone, Colombian start-ups carried out at least 115 operations worth more than 1.596 billion dollars. According to the Colombian Ministry of Economy, this figure is very close to the $1.669 billion in FDI that Colombia has made in Mexico. However, the institution also highlights that, if we only take into account the data for 2021, FDI was 61 million dollars, which represents an annual drop of 47%.
On these data, Jorge Tovar, professor at the Faculty of Economics at the University of the Andes in Colombia, said: "The pandemic hit us hard, commercial transactions fell. However, curiously, in terms of exports from Colombia to Mexico, we have not returned to pre-pandemic levels".
Colombia is launching initiatives to connect national and foreign companies with the aim of generating new business opportunities to help mitigate the impact of the COVID-19 pandemic.
This connection is particularly evident in the Life Sciences sector, where one-on-one meetings were held between national companies working in the sector and potential new suppliers. These companies include Fresenuis, BYD, Elis and Abbott, as well as market access and marketing suppliers, Beurer, and logistics and distribution channel companies, Fisher & Paykle. In addition, there are companies providing market research services in medical devices; and Davita, which connected with personal protective equipment companies.
Last year a total of 158 multinationals set up in Colombia with individualised plans in different areas of support in relation to district and/or national entities, accompaniment in the implementation of national and district government measures in the COVID-19 situation, taking advantage of incentives and tax provisions as a result of the health emergency, with support in commercial management, according to the report.
The arrival of these multinationals has brought new opportunities to the country, including: 22 new potential reinvestment agreements identified and have brought benefits to 18 economic sectors. In total, 430 meetings have taken place, which is 247% more than in 2019 and a growth of 50% in plans to accompany foreign companies established in Bogota Region.
Colombian courier and parcel delivery company, Mensajeros Urbanos, is one of the companies looking to expand its business to Mexico. The Colombian company made around 7 million deliveries, while in 2020 the figures increased to 11 million and in 2021 it reached 15 million orders.
On these figures, Mensajeros Urbanos CEO Santiago Pineda said: "Mexico is accounting for 15% of the company's total operation. Last year we grew 4.4 times compared to 2020, which was a very good year. This is despite the pandemic and this year we also expect a similar growth between four to five times the size of last year's company".
Americas Coordinator: José Antonio Sierra.
