Lastarria Entrepreneur Scales Santiago Startup to 500 Workers in Three Years

In a nondescript building on Merced Street in Lastarria, something unusual is happening for Santiago's notoriously tight job market: a company is hiring faster than it can find qualified candidates. MercadoTech, a software-as-a-service firm specializing in supply-chain logistics for Latin American retailers, has grown from a 12-person operation in 2023 to 507 employees today—with plans to add another 200 positions by year-end.

The expansion defies current economic conditions. Chile's unemployment rate sits at 7.9%, according to June data from the National Statistics Institute, while the broader region grapples with inflation and cautious corporate spending. Yet MercadoTech's trajectory reveals an emerging fault line in Santiago's employment picture: certain sectors are booming while traditional office jobs stagnate.

"We're not competing on salary alone," says the company's operations director, speaking on condition of anonymity to protect commercially sensitive information. The firm offers flexible work arrangements, equity packages for mid-level staff, and subsidized childcare—benefits rare in Santiago's corporate landscape, where median salaries for mid-tier tech roles hover around 3.5 million pesos monthly. MercadoTech's entry-level developers earn approximately 4.2 million, a 20% premium.

The company's growth has forced it to establish a training academy in partnership with Universidad de Chile, aimed at converting junior talent from humanities backgrounds into junior developers within six months. So far, 60 graduates have joined the payroll, a direct response to Santiago's persistent shortage of STEM-qualified workers.

Local economists note this pattern reflects broader shifts. While manufacturing and traditional services shed workers—retail employment in the capital fell 3.2% year-over-year—tech, fintech, and business process outsourcing have created over 8,000 net new positions in greater Santiago since 2024. Real estate costs in commercial hubs like Providencia and Las Condes have soared, yet MercadoTech deliberately chose the comparatively affordable Lastarria neighborhood, keeping overhead low while remaining accessible to public transit.

The strategy appears sustainable. The company recently secured a $47 million Series B funding round, with investors citing Santiago's deepening position as a regional tech hub. Unlike previous employment cycles, where growth concentrated among multinational branches, homegrown companies now anchor job creation.

For Santiago's workforce, MercadoTech's expansion signals opportunity in unexpected places. But it also underscores a widening divide: those with technical skills enjoy robust demand and rising compensation, while traditional office workers face continued pressure. The capital's employment future increasingly depends on how many workers can make that transition.

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