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![TacticzH Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::1488239011378388997.png) TacticzHazel - Value Investing [@TacticzH](/creator/twitter/TacticzH) on x 13.5K followers
Created: 2025-06-27 20:30:35 UTC

My $DLO thesis in short:

Basically a mini- $ADYEN. They do cross-border payments for merchants in emerging markets. They enable merchants to accept and disburse payments through one single API.

The Good:
✅ Fast growing TPV - over XX% CAGR since 2021
✅ Fast growing revenue - Close to XX% CAGR last X years, and still expected to double in the next X
✅ Strong cash position /no debt
✅ Margins stabilizing
✅ FCF margin currently XXX% but expected to normalize around XX%
✅ ROCE above XX%
✅ Strong CEO with Pedro Arnt
✅ Huge TAM to attack

The risky:
❌High concentration in a small group of merchants
❌ Currency risks and exposure to economic instability
❌Regulatory changes
❌Competing with big players like $ADYEN and $STRIPE
❌Take rate could be pressured by big merchants as their volume increases

The money:
How do they make money: 
👉Through transaction fees: taking a small percentage of each payment they process
👉Currency exchange fees: They charge for converting local currencies into dollars or euros for the merchant.

💸Valuation: attractive

Thoughts?

![](https://pbs.twimg.com/media/Gueh-eeX0AAC2ez.jpg)

XXXXXX engagements

![Engagements Line Chart](https://lunarcrush.com/gi/w:600/p:tweet::1938696482401480752/c:line.svg)

**Related Topics**
[$adyenas](/topic/$adyenas)
[debt](/topic/debt)
[$adyen](/topic/$adyen)
[investment](/topic/investment)
[$dlo](/topic/$dlo)

[Post Link](https://x.com/TacticzH/status/1938696482401480752)