Mexico City has rapidly evolved into one of Latin America’s most dynamic startup ecosystems. As the capital and largest city of Mexico, it serves as the country’s primary economic and business hub, attracting entrepreneurs, investors, and tech talent from across the region.
With a population exceeding 21 million people, Mexico City offers a large domestic market and acts as a gateway to the broader Latin American market, making it an attractive location for startups.
The ecosystem is characterized by its diversity, with startups emerging across various sectors, including fintech, e-commerce, health tech, and logistics. The Mexican government’s support, combined with a growing number of accelerators, incubators, and venture capital firms, has significantly contributed to the city’s burgeoning startup scene.
As of the most recent data, Mexico City is home to over 2,300 startups, with the ecosystem valued at approximately $22 billion. The city has also produced several unicorns, further solidifying its status as a leading startup hub in Latin America.
key players in the mexico city startup ecosystem
Mexico City’s startup ecosystem is powered by a combination of leading startups, influential investors, and supportive infrastructure that together create a thriving environment for innovation and growth.
leading startups
Several Mexico City-based startups have achieved significant success, disrupting industries and setting benchmarks for innovation.
- Kavak: Founded in 2016, Kavak is an online platform for buying and selling used cars. The startup has revolutionized the used car market in Mexico by offering a seamless, customer-friendly experience with a strong focus on transparency and quality.
In 2020, Kavak became Mexico’s first unicorn after a $700 million valuation, and as of 2023, the company is valued at over $8.7 billion. Kavak’s rapid growth and success are emblematic of the potential within Mexico City’s startup ecosystem. - Clip: Clip, founded in 2012, provides mobile point-of-sale systems that allow businesses to accept card payments via smartphones and tablets. The startup has become a key player in Mexico’s fintech sector, addressing the need for accessible and affordable payment solutions.
In 2021, Clip raised $250 million in a Series D funding round, reaching a valuation of $2 billion. Clip’s success underscores the importance of fintech innovation in Mexico City’s ecosystem.
case studies of successful startups
The following case studies provide detailed insights into how some of Mexico City’s most successful startups have scaled their businesses and made a lasting impact on their industries.
Kueski:
Kueski is a fintech startup founded in 2012 that provides microloans to individuals who do not have access to traditional banking services. The company leverages advanced algorithms and data analytics to assess creditworthiness and offer instant loans online.
Kueski has become one of the largest online lending platforms in Mexico, with over 5 million loans disbursed as of 2023.
Kueski’s growth was fueled by its ability to address a significant market gap in Mexico, where a large portion of the population is underbanked. The startup’s customer-centric approach, combined with its focus on innovation and technology, allowed it to expand rapidly.
In 2021, Kueski raised $100 million in a Series C funding round, which enabled the company to further develop its product offerings and expand into new markets. Kueski’s success highlights the critical role that fintech startups play in financial inclusion within Mexico’s economy.
Cornershop:
Cornershop, founded in 2015, is an on-demand grocery delivery service that quickly gained popularity in Mexico City and beyond. The startup’s user-friendly app allows customers to order groceries from their favorite stores and have them delivered to their doorstep within hours.
Cornershop’s rapid growth was driven by its ability to solve a key pain point for urban consumers—convenient access to groceries without the need to visit physical stores.
Cornershop’s success attracted the attention of major global players, leading to a $450 million acquisition by Uber in 2020. This acquisition marked a significant milestone for the startup and for Mexico City’s startup ecosystem, as it demonstrated the potential for local startups to scale globally.
Cornershop’s journey underscores the importance of innovation, customer experience, and strategic partnerships in achieving success within Mexico City’s ecosystem.
influential investors and venture capital firms
Mexico City’s startup ecosystem is supported by a robust network of investors and venture capital firms that provide the necessary capital and strategic guidance for startups to scale.
- ALLVP: ALLVP (Anthemis Latam Venture Partners) is one of the most active venture capital firms in Mexico, with a strong focus on early-stage startups. The firm has invested in several of Mexico City’s leading startups, including Cornershop, Clip, and Kueski. ALLVP is known for its hands-on approach, helping startups navigate the challenges of scaling and entering new markets.
- Kaszek Ventures: Although based in Argentina, Kaszek Ventures has a significant presence in Mexico City’s startup ecosystem. The firm has invested in multiple successful startups in the region, including Kavak and Bitso, a leading cryptocurrency platform. Kaszek’s expertise in scaling startups across Latin America makes it a key player in Mexico City’s venture capital landscape.
- 500 Startups Mexico: The Mexico City arm of 500 Startups is a prominent accelerator and early-stage venture capital firm that has supported numerous startups in the region. The firm’s accelerator program provides startups with mentorship, funding, and access to a global network of investors and entrepreneurs. Notable alumni include Konfío and Clip, both of which have gone on to achieve significant success.
key accelerators and incubators
Accelerators and incubators play a crucial role in nurturing early-stage startups in Mexico City, offering them resources, mentorship, and networking opportunities.
- MassChallenge Mexico: MassChallenge is a global accelerator that launched its Mexico City branch in 2016. The accelerator has since supported over 200 startups, providing them with access to mentorship, workshops, and potential investors. MassChallenge Mexico is sector-agnostic, supporting startups across various industries, including fintech, health tech, and social impact.
- Startupbootcamp FinTech Mexico City: Focused specifically on fintech, Startupbootcamp FinTech Mexico City is an accelerator that helps early-stage fintech startups scale their businesses. The program offers mentorship, office space, and access to a global network of fintech experts and investors. Alumni of the program include leading fintech startups such as ePesos and Quotanda.
- Wayra Mexico: Wayra is the innovation hub of Telefónica and operates accelerators in multiple countries, including Mexico. Wayra Mexico supports startups in the technology sector, offering funding, mentorship, and access to Telefónica’s network of corporate partners. Notable startups supported by Wayra Mexico include Jüsto and Apli.
supporting infrastructure
Mexico City’s startup ecosystem is bolstered by a strong supporting infrastructure that includes co-working spaces, educational institutions, and government initiatives.
co-working spaces and innovation hubs
Co-working spaces in Mexico City provide startups with flexible office space and a collaborative environment that fosters innovation and networking.
- WeWork Mexico City: WeWork has a significant presence in Mexico City, offering multiple locations across the city. These spaces provide startups with the flexibility to scale their office space as needed and offer amenities such as high-speed internet, meeting rooms, and networking events.
- Impact Hub Mexico City: Impact Hub is a global network of co-working spaces that focuses on social impact startups. The Mexico City branch offers a collaborative workspace, mentorship, and access to a global community of impact-driven entrepreneurs.
educational institutions and talent development
Mexico City is home to several top universities that contribute to the talent pool and drive innovation within the startup ecosystem.
- Instituto Tecnológico Autónomo de México (ITAM): ITAM is one of Mexico’s top universities, known for its strong business and economics programs. The university produces a steady stream of talented graduates who often go on to found or work for startups. ITAM also hosts events and workshops aimed at fostering entrepreneurship among its students.
- Universidad Nacional Autónoma de México (UNAM): UNAM is the largest university in Mexico and Latin America, offering a wide range of programs in engineering, business, and technology. The university plays a key role in nurturing the talent pool in Mexico City, with many successful entrepreneurs and startup founders among its alumni.
government initiatives and policies
The Mexican government has implemented several initiatives and policies aimed at supporting the growth of startups and fostering innovation.
- Programa Nacional de Emprendedores: This national program provides funding, mentorship, and training for entrepreneurs across Mexico. In Mexico City, the program has supported numerous startups, helping them to refine their business models and connect with potential investors.
- INADEM (Instituto Nacional del Emprendedor): INADEM was a government agency dedicated to supporting entrepreneurship in Mexico, providing grants, loans, and resources to startups. Although INADEM was dissolved in 2019, its legacy continues to influence Mexico City’s startup ecosystem, with many of its programs and initiatives now managed by other government bodies.
Data table on mexico city startup ecosystem
The following table provides an overview of key statistics related to Mexico City’s startup ecosystem:
| Metric | Value (as of 2023) |
|---|---|
| Number of startups | 2,300+ |
| Ecosystem valuation | $22 billion |
| Number of unicorns | 5 |
| Total venture capital raised | $2.2 billion (2022) |
| Average startup funding round | $4.5 million |
| Leading industries | Fintech, E-commerce, Health tech |
| Notable accelerators | MassChallenge Mexico, Wayra Mexico |
| Number of co-working spaces | 150+ |
| Top universities | ITAM, UNAM |
future outlook for mexico city’s startup ecosystem
Mexico City’s startup ecosystem is well-positioned for continued growth, driven by factors such as a large and diverse talent pool, increasing investor interest, and a supportive infrastructure.
The city is expected to see further innovation in key sectors like fintech, health tech, and e-commerce, as well as the emergence of new industries fueled by technological advancements.
In the coming years, Mexico City is likely to strengthen its position as a leading startup hub in Latin America, attracting more international investors and fostering the growth of startups with global aspirations.
The city’s ability to adapt to changing market conditions, leverage its strategic location, and capitalize on its strengths will be critical in maintaining its competitive edge on the global stage.
Overall, Mexico City offers a vibrant and dynamic environment for entrepreneurs looking to innovate, scale, and make a global impact. With a strong foundation already in place, the city is poised to continue its trajectory as a leading startup ecosystem in Latin America.