According to various definitions, in a few words, it is a private capital company that achieves a market value of more than a billion dollars, they are generally startup companies, that is, they are related to emerging companies that have a strong relationship with technology, that is, from the digital as the applications that we use daily. These are businesses with innovative ideas that stand out in the market supported by new technologies. Call it mobility, financing, education, health, etc. Among the main and most renowned for their value are: Kavak (used cars), Bitso (cryptocurrencies), Clip (electronic payments), Konfio (loans), Incode, (artificial intelligence), Merama (electronic commerce), among others.
In the last five years, the entrepreneurial ecosystem of our country has presented a very accelerated progress, due, in large part, to the increase in financing and acceleration options for new companies. During this period, there has been a change in mentality: large capitals no longer consider it a bad idea to invest their resources in startups, due to the enormous potential that technological ventures have to generate economic returns.
According to an article in the newspaper El Financiero, Mexico currently has seven unicorn startups: Kavak, Bitso, Clara, Clip, Konfío, Incode and Merama. One of the challenges of all these companies is to achieve profitability, since many of them still do not reach this level.
Of the seven current Mexican unicorns, four are fintech, which is a sign of the effervescence that exists in this sector in Mexico. There are 512 fintech startups operating in the country, 16% more than in 2020.
In this context of the social, what are those unicorns that are created with a social purpose and that at the same time generate capital. A few weeks ago I was invited to the launch of the startup “Betterfly” in Mexico, a startup created by the Chilean Eduardo della Maggiora, and which was the first social unicorn in Latin America. “Betterfly” aims to promote people’s physical activity to convert it into points to benefit social causes. The most interesting thing is that these are also incorporated into an insurance premium, which can increase the benefits of the insured premium, according to how healthy and how active the person is. In words according to its website: “We create tools that link simple and everyday acts of well-being with benefits for families and support for global causes. It is a powerful combination of personal effort, financial reward, and social impact that begins and ends with people motivated to be better, do better, and create something better for the world. No matter who you are, you have the power to make a difference.”
Another Mexican startup related to fintechs is “Kubo Financiero” which, although it is not yet a social unicorn but is heading towards that path, was created from identifying a social need, granting credits and forms of payment in the medium-low and low socioeconomic levels. of the company, also known as Sofipo, Sociedad Financiera Popular. Created by Vicente Fennol-Algorta. A multi-product platform that offers savings, investment, debit card, transfer and personal loan plans. They create online financial products to improve the lives and drive the goals of their clients. It is worth mentioning that Kubo Financiero is classified as a B Company, which are those companies certified by System B, companies that within their policies and statutes have clear policies and actions with a positive impact on society and the environment.
Social unicorns have a great opportunity to show that, even when seeking to be profitable in business, it is clearly possible to have a positive impact on society and the environment at the same time.
There is nothing new about a business being driven by something other than profit. Incorporating corporate social responsibility into the ethos of a company has long been considered a good way to run a business, with investors devising environmental, social and governance (ESG) metrics that recognized that a business that did not harm people or the environment was less risky, and is likely to generate better returns.
As the Sistema B organization says, B Corporations are companies that seek to be better for the world and not just the best in the world, so let’s see how these startups evolve with social purposes and at the same time be profitable.