German IoT company Emnify to expand in Latin America

German IoT connectivity solutions provider Emnify is investing to increase its presence in Latin America after what it considers a successful first year of operations in Brazil.

The company's focus is mainly on connecting systems, payment methods, vehicle tracking and cargo transportation, among others, in countries such as Mexico, Colombia and Chile, as well as markets in the Caribbean like the Dominican Republic.

“We have a very hot IoT market in the region. The Mexican market, for example, for light vehicles is larger than that of Brazil. And one of the verticals that continues to grow is vehicle tracking,” newly appointed LatAm sales VP Carlos Campos told BNamericas.

“The demand for payment equipment also continues to grow. It's a giant market that still has a lot to grow, and that needs connectivity. Same thing for security, people monitoring, animal tracking, AI cameras, etc. There are many frontiers to explore,” he added.

Despite now structuring a local and direct operation in Latin America, Emnify already served the region previously. At present, LatAm represents around 20% of the company's business, according to Campos.

Without disclosing numbers, he said Emnify manages “tens of millions of connections for thousands of customers,” many of them in Latin America.

Founded in 2014, Berlin-based Emnify provides solutions for tech companies to embed M2M/IoT connectivity on any device and manage it in an integrated way, through cloud-based technology, accessible from any location and on a large scale.

Emnify owns a core network technology, which is independent of vendors such as Ericsson or Nokia, running in the AWS public cloud, according to Campos.

Through this platform, it claims to provide direct access to more than 540 cellular networks in over 180 countries, in addition to access to various local technologies (2G, 3G, 4G, 5G, LTE-M, NB-IoT).

Since launching the service in Brazil in mid-2023, Campos said Emnify has exceeded its sales expectations and strengthened its local team to meet market demands.

Last August, Emnify acquired Cinco Telecom, the telecoms operation of the J. Safra banking group in Brazil, marking its entry into the local IoT-MVNO scene.

“By acquiring Cinco Telecom, Emnify not only strengthens its global footprint, but also establishes itself as an Authorized Mobile Virtual Network Operator (MVNO) in Brazil, compliant with the country's intricate legislation on mobile communication services,” the company said in a release at the time.

Upon inheriting the MVNO operation in Brazil, the company had Claro as its main network partner. 

According to consultancy Transforma Insights, cellular-based IoT connections in Brazil are expected to reach 69mn at the end of 2027, from 29mn at the end of 2022, which would be a CAGR of 19.1%.

Fleet management, telemetry, logistics, insurance, payment methods, retail, smart cities, health, agribusiness and urban mobility are among the services that the company intends to explore in the region. 

Campos highlights Mexico as a promising market that has evolved well in the MVNO model.

He did not reveal how much is being invested in the expansion but said the company is “fully-funded” and has the support of different investors for the growth of the operation.

In early 2022, Emnify received a US$57mn series B investment round from London-based growth investor One Peak, reaching US$80mn in equity raised by that time.