Peru may not be the first destination that comes to mind when considering tech and software innovation. With its rich cultural history and breathtaking landscapes, it’s easy to miss that the country has been gaining attention as a hub for software investment in recent years.
Having completed our first acquisition in Peru in 2022, the team at Vesta Software Group are keen to continue our exploration of investment in the market. Here’s why:
Economic stability
Peru has one of the best performing economies in Latin America. It has shown consistent economic growth and political stability over the last few decades, making it an attractive investment destination.
Government support
The Peruvian government recognises the importance of the digital economy and has implemented initiatives and policies aimed at promoting technological development and entrepreneurship. A key initiative is the Startup Peru programme, which has financed more than 3,400 entrepreneurial projects to date.
Growing tech ecosystem
The software market is expected to grow by 5.5% from 2023 to 2028, Statista reports, with Lima, the capital of Peru, becoming a centre for startups and technology companies. Entrepreneurs and tech enthusiasts from both Peru and abroad have been drawn to the vibrant city, positioning Lima as a prominent player on the global technology stage.
Strategic location & cultural ties
Peru’s geographical location is advantageous for businesses. It has emerged as a sought-after destination for businesses looking to collaborate with companies in similar time zones, particularly those in North America.
The country also has strong cultural and business ties with both North and South America, which positions it well as a bridge between the two continents.
Skilled talent pool
With several top universities and institutions offering tech and software development courses, Peru proudly boasts a growing number of graduates and professionals, ensuring a steady stream of skilled workers. Labour costs are also lower than in many developed countries, offering cost advantages for companies.
Bilingual population
Many professionals in Peru speak both Spanish and English, which increases the ease of international collaboration and business expansion.
Untapped market
While the tech boom has saturated markets in places like North America and Europe, there are still plenty of untapped opportunities in Peru, which are in the earlier stages of their tech revolution.
Growing internet penetration
One of the biggest draws of Peru is its internet connectivity and usage. While it was recently only in its infancy, it is now growing exponentially. This expanding digital landscape has opened up a broader audience for tech businesses, making Peru an even more appealing investment destination.
Growing middle class
As Peru’s middle class grows, there is an increasing demand for sophisticated software solutions in diverse sectors, from finance to healthcare, creating plenty of opportunities for software companies.
Infrastructure development
Peru has made substantial investments in its infrastructure, including enhancements in internet infrastructure and transportation systems. These developments play a crucial role in supporting the growth of tech businesses and creates a strong environment for a thriving industry.
Free trade agreements
Peru has free trade agreements with major economies like the US, Canada, the European Union and China. This facilitates easier business transactions and collaborations.
Our view on Peru
For us, Peru stands out as an environment where businesses can thrive. With its impressive economic growth, skilled workforce, enhanced infrastructure and competitive costs, we are excited to see the growth opportunities that Peru will bring, both in the immediate future and the long term.
As we look to supercharge our expansion strategy in the area, we would love to speak with more software companies who are looking to pursue the next step in their journey. Get in touch with our team today to start a conversation.
