MercadoLibre Surges as Profits Double As business booms, the company’s US-traded shares advanced as much as 13% on Thursday, their biggest intraday move in nine months, to over $1,300. Net income more that doubled from a year earlier to $261.9 million in the second quarter. Operating margins totaled 16.3%, and net sales jumped to a record $3.4 billion. (READ MORE)(EMQQ INDEX)
Modi says economy will be among the top three in the world within 5 years “When poverty decreases in a country, the power of the middle class increases considerably,” prime minister Narendra Modi said during a celebration of India's Independence Day. His statement echoes last year's S&P Global and Morgan Stanley forecast that India’s economy would overtake Japan and Germany’s to become the world’s third largest by 2030.
Buffett-backed Nubank posts record revenue on strong user growth The bank reported record revenue for the second quarter as it logged a surge in new customers. Nubank added 4.6 million customers in the quarter, reaching a total of 83.7 million customers globally, representing 28% growth from a year earlier. This helped total revenue surge 60% to $1.9 billion from a year earlier.
India's Internet Economy to Grow 3X the Broader Economy
The Indian economy is primed for strong growth over the next decade. As Prime Minister Modi stated during his Independence Day speech, India is on pace to become the world’s third largest economy by 2030, overtaking Germany and Japan.
But the country's internet economy is set for even faster growth. According to a joint report from Google, Bain & Company and Temasek, India’s internet economy is set to reach $1 trillion by 2030, up from $185 billion in 2022. That means the internet sector in India could outgrow the broader economy by a factor of 3 over the next 10 years.
The Chinese e-commerce company that's betting solely on emerging markets From its inception in 2019, Hibobi knew it didn't want to enter the U.S. market. The e-commerce company based in Hangzhou opted for two regions with key shared circumstances: a rising middle class with an appetite (and the income) to spend, a growing online population and increasingly good infrastructure to connect them logistically with China.
That's why Hibobi, which sells clothing for mothers, babies and children, is fully committed to the Middle East and Latin America. It's not a fast-fashion e-commerce company per se, as it doesn't add too many items to its app and online store as frequently as a company like Shein does. However, its target market tends to buy from Hibobi a couple of times a month: babies and children grow out of their clothes to quickly, so they need new clothes often.
Hibobi is not a large e-commerce company yet. It's annual revenue is over one billion USD, an increase of 50% compared to last year. Latin America —mostly Brazil and Mexico— contributes around 5% of the company's revenues, thought that market has grown 110% YoY. A key reason is Brazil's newly connected air freight with China, which has doubled the number of charter planes going back and forth the two countries each week. By venturing into blue ocean markets that are primed for online disruption, Hibobi is set to keep growing. Sources: EMQQ reporting, Rest of World.
Akeem Bailey is the Director of Research at EMQQ Global. Akeem joined EMQQ Global in 2021. Akeem leads the firm's research efforts and actively works with investors on a wide range of subjects from portfolio analytics and valuation to helping articulate the long term growth opportunity in the Emerging Markets tech landscape. Prior experience includes over six years working in emerging market equities as an investment professional as well as multiple years serving as a strategy consultant in India. His career is deeply rooted in the emerging markets, both on the ground and as an investor.
