I recently came across the story of Ilson Mateus and I must admit that he is one of those cases that really worth studying if you want to understand how Brazilian retail works outside the major cities.

His journey is practically a entrepreneurship manual: he started as a prospector in Serra Pelada in the 80s, it didn’t work out, he returned to Maranhão and opened a small grocery store in Balsas. But here’s the key difference — while many would have given up, Ilson Mateus identified an opportunity that others didn’t see: it wasn’t just about retail sales, it was also about logistics, moving goods between cities. That decision was extremely strategic.

What started as Armazém Mateus evolved into an empire. In the 90s and 2000s, the group expanded into supermarkets, then entered wholesale with Mix Mateus, created its own electronics brand, and developed its own industry with Bumba Meu Pão. The strategy was clear: not to be stuck with just one model, diversify operations but keep focus on the North and Northeast.

And here comes the most interesting point for market followers: in 2020, amid the pandemic, Ilson Mateus took Grupo Mateus (GMAT3) to the stock market. Raised R$ 4.63 billion in an IPO that was the largest in Brazil that year. Revenue of R$ 9.9 billion in 2019, and after that, everything accelerated — new stores, partnerships with Bradesco, e-commerce, modernized logistics.

In 2022, Forbes estimated Ilson Mateus’s fortune at US$ 1.7 billion. That’s not little considering he started from scratch in a state with limited infrastructure.

What makes this relevant for investors? Simple. Ilson Mateus proved that you don’t need to be in São Paulo or Rio to build something significant. The hybrid model he developed — retail + wholesale + own production — created margins that larger competitors can’t easily replicate. Plus, vertical integration (producing your own) improved quality control and profitability.

Of course, there are risks: geographic concentration, retail margins always under pressure, sensitivity to consumption by middle and lower classes. But the fact is that GMAT3 continues growing in a sector that many thought was saturated.

Ilson Mateus’s story is basically about seeing opportunity where others see obstacles. From a grocery store in Balsas to a billion-dollar IPO — it’s the kind of case that makes us rethink what’s possible in Brazil.