Argentina's Digital House Secures $50M to Address LatAm Tech Talent Gap
Digital House Secures Over $50 Million in Funding
Digital House, an edtech company headquartered in Buenos Aires, has recently announced the successful completion of a funding round exceeding $50 million. The company specializes in the development of technological skills through comprehensive, remotely delivered courses.
Strategic Investment from Tech Leaders
A significant aspect of this funding is the involvement of two prominent technology corporations as primary investors. These include Mercado Libre, a leading e-commerce platform in Latin America, and Globant, a software development firm based in San Francisco. Riverwood Capital, a private equity firm located in Menlo Park, and Kaszek, an early-stage Latin American venture firm, also contributed to this financing round.
This latest investment elevates Digital House’s total funding to over $80 million since its establishment in 2016. Previously, The Rise Fund spearheaded a $20 million Series B funding round in December 2017, marking its initial investment within the Latin American market.
Growth Driven by Demand for Tech Professionals
Nelson Duboscq, CEO and co-founder of Digital House, emphasized that the escalating demand for skilled tech professionals throughout Latin America is a key driver behind the increased need for the startup’s online courses.
Since initiating its course offerings in March 2016, the company has experienced a compound annual growth rate (CAGR) of 118% in revenues and 145% in student enrollment. Duboscq stated that the 350-person organization is projected to achieve profitability this year and is currently on track to do so.
Platform Usage and Regional Focus
In 2020, Digital House’s platform was utilized by 28,000 students across Latin America. The company anticipates exceeding 43,000 course participants in 2021.
Brazil currently accounts for 50% of the company’s business, with Argentina contributing 30% and the remainder originating from other Latin American countries.
Course Offerings and Skill Development
Digital House provides courses designed to impart in-demand digital skills to individuals seeking employment in the digital sector, as well as to companies aiming to upskill their workforce.
The curriculum focuses on practical application, with courses ranging from six months to two years in duration. These courses cover areas such as web and mobile development, data analytics, user experience design, digital marketing, and product development.
Flexible Learning and Career Support
Courses are entirely accessible online, combining live virtual classes led by experienced instructors with self-paced learning materials delivered through videos, quizzes, and exercises.
Digital House also facilitates job placement for its graduates, boasting an employability rate exceeding 95%.
Future Plans and New Initiatives
The newly acquired capital will be allocated towards the continued enhancement of Digital House’s digital training platforms. Furthermore, the company will launch a two-year tech training program, the “Certified Tech Developer” initiative, collaboratively developed with Mercado Libre and Globant.
This program aims to train a substantial number of students through full-time courses and connect them with technology companies globally. Digital House also intends to broaden its course portfolio beyond software development, incorporating specializations in e-commerce, digital marketing, data science, and cybersecurity.
Expansion of partnerships with technology employers and companies throughout Brazil and Latin America is also planned, alongside potential “strategic M&A” activities, according to Duboscq.
Industry Perspectives on the Tech Talent Gap
Francisco Alvarez-Demalde, co-founder & co-managing partner of Riverwood Capital, highlighted the accelerating digitization of the Latin American economy and the resulting demand for tech-proficient talent.
He noted the increasing need for roles beyond traditional web development, including data scientists, digital marketing specialists, and cybersecurity experts. Alvarez-Demalde pointed out that Brazil alone requires over 70,000 new IT professionals annually, while only approximately 45,000 are currently being trained.
Consequently, salaries for IT professionals in the region have risen by 20% to 30% in the past year. Alvarez-Demalde believes Digital House is well-positioned to address this talent shortage and serve as a key provider of future digital talent in Latin America.
Mercado Libre’s Perspective on the Partnership
André Chaves, senior VP of Strategy at Mercado Libre, stated that the company recognized Digital House’s ability to accurately understand the needs of Mercado Libre and other technology companies.
He emphasized Digital House’s agility and responsiveness to evolving job market demands, as well as its deep understanding of the Latin American landscape, including its risks and entrepreneurial environment. Chaves acknowledged the importance of local knowledge in a region where global players have long been successful.