Uruguayan payment processing firm dLocal has seen its shares fall to less than half their value since its 2021 IPO, after hedge fund Muddy Waters mentioned “red flags” in its accounts this month. The company’s shares were already down 30% before the Muddy Waters report.
“Of course, the market has changed in 2022,” Mike Packer, a partner at US venture capital firm QED Investors, said in the report. “Throughout most of 2023, we expect companies to continue to focus more on milestones and track rather than growth at all costs,” he said.
Latin American fintechs raised a record $12.9 billion in funding last year, according to the report, with companies that focus on consumer finance raising more than half that amount.
Now, as funding begins to hit the brakes, startups may face more scrutiny and setbacks entering the final stages of raising, investors told Latitude.
With information from Reuters.