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At Baillie Gifford, we see significant opportunity in these global innovators. Far from being mere local adaptations of western tech giants, companies such as Latin America’s MercadoLibre and Southeast Asia’s Sea Ltd are reshaping economies by solving deep-rooted challenges with agility, ambition and creativity. They stand as powerful examples of why a global perspective, particularly through active management, is critical to uncovering the next wave of sustainable growth.
Take MercadoLibre. What began as an ecommerce platform has since grown into an expansive digital ecosystem encompassing logistics, payments and financial services. Crucially, it didn’t follow an existing blueprint – it created one from scratch tailored to its environment.
Latin America has long struggled with fragmented logistics and limited access to banking. In response, MercadoLibre built MercadoEnvios, its own delivery infrastructure. This includes an aircraft fleet serving vast markets like Brazil. Meanwhile, MercadoPago, its fintech arm, has enabled millions to participate in the digital economy, offering digital wallets, credit services and payment solutions for those in Latin America that traditional banks have failed to reach.
This ability to vertically integrate and innovate around infrastructure gaps has made MercadoLibre a commercial success, promoting economic inclusion across the region. This combination of technological advances with a deep focus on meeting the needs of underserved consumers and small businesses has powered the company’s growth.
© Getty Images
Sea Ltd, based in Singapore, takes this multi-pronged approach even further. The business began in gaming, generating substantial free cash flow through its Garena division and global hit game, Free Fire. It used this capital to build Shopee, now Southeast Asia’s dominant ecommerce platform. From there, it expanded into digital payments and banking through SeaMoney. This integration has created a seamless customer journey, housing everything from entertainment to ecommerce to financial services within a single ecosystem.
What’s particularly striking about both companies is how their success stems from their ability to reimagine models to reflect local dynamics. These are not second-tier versions of Amazon or PayPal: they are more embedded, more essential and often more innovative in how they meet consumer needs.
But that is not all they offer for investors. In addition to their growth potential, both these companies and others held in our international portfolios, offer a welcome diversification from the valuation extremes of the US market.
That diversification is increasingly valuable. US equities now account for nearly 70 per cent of global indices, with a handful of companies dominating market cap and attention. Meanwhile, international markets, which are home to over 2,000 companies across 46 countries, remain underrepresented and undervalued. Exploring this broader opportunity set enables active investors with a global remit to uncover businesses that are both transformative and underappreciated.
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The views expressed should not be considered as advice or a recommendation to buy, sell or hold a particular investment. They reflect opinion and should not be taken as statements of fact nor should any reliance be placed on them when making investment decisions.
This communication was produced and approved in June 2025 and has not been updated subsequently. It represents views held at the time of writing and may not reflect current thinking.
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