In markets like Latin America, founders cannot rely on existing infrastructure. Success requires creating foundational systems like payments and logistics from scratch. This means building several parallel businesses just to enable the core consumer-facing product to function effectively.
Instead of mirroring Amazon’s capital-intensive, fully-owned logistics network, MercadoLibre adopted a flexible hybrid model. It owns the core infrastructure but partners with local services for last-mile delivery, achieving speed and reliability without the massive capex burden.
Instead of a country-by-country rollout, Kavak expands city by city, targeting dense urban areas with multi-billion dollar markets and significant problems like high fraud and low financing. This allows them to master the playbook in one complex environment before replicating it.
While international markets have more volatility and lower trust, their biggest advantage is inefficiency. Many basic services are underdeveloped, creating enormous 'low-hanging fruit' opportunities. Providing a great, reliable service in a market where few things work well can create immense and durable value.
In environments with systemic failures, like healthcare in Nigeria, a product for a single pain point is ineffective. A successful solution must address interconnected issues like supply chain integrity, user financing, and logistics simultaneously, treating the entire value chain as the product.
Startups often fail to displace incumbents because they become successful 'point solutions' and get acquired. The harder path to a much larger outcome is to build the entire integrated stack from the start, but initially serve a simpler, down-market customer segment before moving up.
MercadoLibre built its payment system, MercadoPago, out of necessity in a market lacking a trusted digital payment solution. This created a powerful, integrated commerce and payments flywheel that fueled adoption and established a moat that competitors like Amazon struggled to overcome.
For founders in emerging markets like Africa, the most valuable asset from a community is not capital but access to good product judgment, taste, and peers. This cultivates the ability to create globally meaningful products where established tech ecosystems don't exist.
To manage a global business across diverse markets, build a single platform with enough built-in flexibility to meet local regulatory and cultural needs. This avoids the massive overhead of redeveloping features for each market or maintaining a complex, fragmented system.
To test its core hypothesis without building costly local infrastructure, Jeeves shipped standard US corporate cards internationally and absorbed the 2% foreign exchange fees. This unprofitable, unscalable MVP quickly proved strong demand for their cross-border product.
To avoid premature scaling, Nubank required three conditions before entering a new country: 1) Profitability in its core market (Brazil), 2) Secure banking licenses and funding, and 3) A tech platform that could launch a new market as a "call option," not an "all-in" bet.