Shaping Business with Digital Trends and Technology in a Multi-Vendor Economy 

The rise of affiliates, influencers, creators, and freelancers in Brazil is reshaping the way businesses operate. As one of the world’s largest digital markets, with high social media engagement and a strong entrepreneurial spirit, Brazil is at the forefront of these trends. To succeed in this evolving landscape, businesses need deep industry insight and a forward-looking strategy. These qualities are essential for staying ahead in an increasingly competitive environmen 

Barak Hirchson, Founder & CSO of Payouts.com, had the privilege of speaking with Guga Stocco, one of Brazil’s most visionary entrepreneurs and strategic thinkers, who has been at the forefront of this transformation. Guga Stocco is a seasoned entrepreneur, speaker, and columnist for Febraban Tech and MIT Technology Review Brazil, with over 20 years of experience in building disruptive businesses. He has held strategic roles at major companies like Microsoft, UOL, and Deloitte, and significantly contributed to the growth of Buscapé as Vice President of Business Development. 

Guga also co-founded Domo Invest, a venture capital firm that has invested in billion-dollar startups like Loggi, Hotmart, and Gympass, and was instrumental in the development of products like MSN, Bing, and AdCenter at Microsoft. Currently, Guga advises leading companies such as Totvs and Vinci Partners while pioneering innovative concepts like Brazil’s first “Human IPO,” which offers tokens linked to the profitability of his portfolio companies. His career is defined by a visionary approach to emerging markets and innovative business models. 

Q1: Barak Hirchson: Guga, I appreciate you joining me today. We’re witnessing a remarkable surge in the number of affiliates, influencers, creators, and freelancers in Brazil. What factors are driving this growth, and how is it reshaping the way businesses operate? 

A1: Guga Stocco: Thank you for having me, Barak. Brazil represents a dynamic and rapidly expanding market, boasting a population of 215 million, with 181 million active internet users —equating to an impressive 84% internet penetration rate. The rise of influencers and affiliates is a key trend to monitor, particularly given that social media usage has surged, reaching over 153 million users by 2023. The digital economy is also flourishing, with the country home to more than 30,000 startups, 88 million e-commerce consumers, and a growing roster of up to 30 unicorns. 

This digital transformation is underpinned by a youthful demographic, with over 50 million individuals between the ages of 15 and 29, creating an ideal environment for the expansion of the affiliate market. One standout example is Hotmart, a Brazilian-born unicorn that has become a leader in the affiliate space. With 35 million users, 1,700 employees, and revenues exceeding $1 billion, Hotmart’s success story is a testament to the potential of Brazil’s digital landscape. I take pride in having been one of the early investors in this remarkable company. 

As we look to the future, the intersection of technology, youth, and digital commerce in Brazil presents unparalleled opportunities for growth, innovation, and investment in the affiliate sector. 

Q2: Barak Hirchson: Managing payments and financial operations with numerous vendors is a significant challenge for businesses, especially when operating in multiple markets. What are the primary difficulties Brazilian companies face in this area? Given these challenges, how essential is it for businesses in Brazil to have a robust and integrated payout solution, and what role does technology play in simplifying these processes and ensuring compliance with tax and regulatory mandates? 

A2: Guga Stocco: Payment operations represent a critical challenge for global enterprises, frequently emerging as a bottleneck in their expansion efforts. The fundamental issue is the stark absence of holistic, end-to-end solutions in the marketplace. Currently, the landscape is dominated by fragmented services, with providers focusing on isolated components of the payment process. While integration of these systems may be achievable within the confines of a single market, such as Brazil, scaling this approach across multiple international markets introduces exponential complexity. This challenge demands significant investments in legal, accounting, and specialized personnel to navigate the intricacies of cross-border operations. 

For any organization with aspirations of global reach, a robust, unified payout solution is not just advantageous—it is indispensable. In an increasingly interconnected world, the ability to streamline payment operations across borders will be a defining factor in the success of global businesses. As industry leaders, we must prioritize the development and deployment of such integrated solutions to empower our clients to thrive in a global economy. 

Q3: Barak Hirchson: What are the unique challenges faced by international companies expanding into Brazil, particularly in leveraging local vendors for marketing and growth, and navigating the complexities of the Brazilian payout landscape? 

A3: Guga Stocco: Brazil presents a market of immense potential, with vast opportunities for foreign enterprises looking to expand their footprint. However, entering this market requires a carefully crafted strategy, given the inherent complexities and bureaucratic challenges that come with it. The country’s 26 states and over 5,570 municipalities each possess distinct cultural and business practices, necessitating a profound understanding of local nuances to effectively navigate the landscape. Moreover, the market is notably fragmented, with a diverse array of micro-influencers operating across various sectors. Effectively managing these dynamics is a formidable task. 

To capitalize on the opportunities in Brazil, it is essential to deploy a scalable and robust payout solution that ensures operational efficiency. This will not only streamline processes but also drive sustained success, enabling our institution to thrive in this multifaceted market. 

Q4: Barak Hirchson: Guga, to wrap up, as the multi-vendor economy in Brazil continues to evolve, what emerging trends do you foresee, and what strategic advice would you offer to companies aiming to effectively manage their vendor relationships and build thriving ecosystem? 

A4: Guga Stocco: We are witnessing transformative market dynamics, with one of the most critical being the strategic management of a global network of affiliates. While Brazilian enterprises have historically faced obstacles in scaling their international operations, the rapid advancements in Al now present an unprecedented opportunity. The ability to seamlessly manage, send, and receive funds across multiple jurisdictions is rapidly emerging as a decisive competitive advantage. As we position ourselves as leaders in this evolving landscape, our strategic focus will be on harnessing these technologies to accelerate global expansion and enhance operational efficiency. We are committed to driving innovation that not only meets but anticipates the needs of our clients in an increasingly interconnected world. 

Barak Hirchson: Thank you, Guga, for sharing your valuable insights into Brazil’s economy. I greatly appreciate the time and expertise you’ve provided today. I’m confident that your vision will continue to inspire and guide many as Brazil’s digital economy evolves and prospers.