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Financial Risk Management (Table)

12 Months Ended

Dec. 31, 2021

Financial Risk Management [Line Items]

Summary of Maximum Exposure to Credit Risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the end of the year was as follows:


		2021				2020
Cash and Cash Equivalents			336,197				111,733
Financial Assets at Fair Value through Profit or Loss			1,004				8,319
Trade and Other Receivables			190,966				72,785
Other Assets			1,339				2,017
			529,506				194,854

Summary of Credit Risk Rating for Trade and Other Receivables at Geographical Regions

The table below discloses the credit risk rating for Trade and Other Receivables, based on external risk ratings of the geographical regions in which the Trade and Other Receivables are held:


Risk rating		2021				2020
A			20,839				7,544
B			4,041				834
BB			103,322				32,612
BBB			26,960				9,787
CCC			35,804				22,008
			190,966				72,785

Summary of Group Exposure to Foreign Currency Risk

The following table presents the Group’s exposure to foreign currency risk as well as a sensitivity to a reasonably possible change in U.S. Dollar, with all other variables held constant. The impact on the Group’s profit before tax is due to changes in the fair value of monetary assets and liabilities.


2021								Gain/(loss)
Account		Currency		Amount				% increase				Amount				% decrease				Amount
Net balances		Brazilian reais			39,017			10%					(3,902	)		-10%					3,902
		Chilean pesos			23,195			10%					(2,320	)		-10%					2,320
		Argentine pesos			22,206			10%					(2,221	)		-10%					2,221
		Mexican pesos			15,048			10%					(1,503	)		-10%					1,503
		South African rand			7,515			10%					(752	)		-10%					752
		Indonesian rupiah			4,370			10%					(437	)		-10%					437
		Peruvian Nuevo Sol			4,021			10%					(402	)		-10%					402
		Colombian pesos			4,010			10%					(401	)		-10%					401
		Euros			3,563			10%					(356	)		-10%					356
		Uruguayan pesos			3,323			10%					(332	)		-10%					332
		Nigerian nairas			2,295			10%					(230	)		-10%					230
		Egyptian pounds			562			10%					(56	)		-10%					56
		Paraguayan guaranís			200			10%					(20	)		-10%					20
		Dominican pesos			127			10%					(13	)		-10%					13
		Pakistanee rupees			113			10%					(11	)		-10%					11
		Bangladeshi takas			38			10%					(4	)		-10%					4
		Moroccan dirhams			9			10%					(1	)		-10%					1
		Total			129,612				—				(12,961	)			—				12,961


2020								Gain/(loss)
Account		Currency		Amount				% increase				Amount				% decrease				Amount
Net balances		Argentine pesos			12,538			10%					(1,254	)		-10%					1,254
		Chilean pesos			10,552			10%					(1,055	)		-10%					1,055
		Brazilian reais			6,571			10%					(657	)		-10%					657
		Euros			5,099			10%					(510	)		-10%					510
		Indian rupee			2,806			10%					(281	)		-10%					281
		Mexican pesos			1,725			10%					(173	)		-10%					173
		Uruguayan pesos			1,692			10%					(169	)		-10%					169
		Nigerian nairas			1,134			10%					(113	)		-10%					113
		Peruvian Nuevo Sol			1,011			10%					(101	)		-10%					101
		Colombian pesos			1,008			10%					(101	)		-10%					101
		Turkish lira			699			10%					(70	)		-10%					70
		Indonesian rupiah			228			10%					(23	)		-10%					23
		Chinese yuan renminbi			221			10%					(22	)		-10%					22
		Paraguayan guaraní			191			10%					(19	)		-10%					19
		Egyptian pounds			141			10%					(14	)		-10%					14
		South African rand			55			10%					(5	)		-10%					5
		Moroccan dirhams			13			10%					(1	)		-10%					1
		Bolivian Boliviano			12			10%					(1	)		-10%					1
		Kenyan shilling			3			10%				-				-10%				-
		West African CFA franc			2			10%				-				-10%				-
		Banbladeshi takas			(32	)		10%					3			-10%					(3	)
		Israeli New Shekel			(103	)		10%					10			-10%					(10	)
		Total			45,566				—				(4,556	)			—				4,556

Summary of contractual undiscounted cash flows

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.


Contractual maturities of financial liabilities 31 December 2021		Less than 6 months				6-12 months				Between 1 and 2 years				More than 2 years				Total contractual cash flows				Carrying amount
Non-derivatives
Trade and other payables			277,160				—				—				—				277,160				277,160
Financial liabilities			5,014				—				—				—				5,014				5,014
Leases liabilities			204				299				462				3,878				4,843				3,928
Total non-derivatives			282,378				299				462				3,878				287,017				286,102
Derivatives
Derivative financial instruments			221				—				—				—				221				221
Total derivatives			221				—				—				—				221				221


Contractual maturities of financial liabilities 31 December 2020		Less than 6 months				6-12 months				Between 1 and 2 years				Total contractual cash flows				Carrying amount
Non-derivatives
Trade and other payables			142,865				—				—				142,865				142,865
Leases liabilities			104				105				17				226				218
Total non-derivatives			142,969				105				17				143,091				143,083
Derivatives
Derivative financial instruments			2,896				—				—				2,896				2,896
Total derivatives			2,896				—				—				2,896				2,896

(e)

Fraud Risk

The Group’s transactions are susceptible to a fraudulent or improper sale and it uses processes to control the fraud risk. The process consists of monitoring transactions through ‘dLocal Defense’ which is a local data-driven prevention program to maximize fraud detection and minimize false positives. This process review transactions at the time of the authorization, legitimate them and use of external tools that are revised on a periodic basis.

The second process detects chargebacks and disputes. This is a supplemental process and increases the Group’s ability to avoid new frauds.

(f)

Capital Management

The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Board’s objectives are to safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The Board of Directors monitors the return on capital as well as the level of dividends to ordinary shareholders.

As part of the requirements for maintaining its financial institution license, dLocal Limited, the Group’s licensee subsidiary is subject to a minimum capital requirement of EUR 400 imposed by the regulator of Malta.