Mercado Pago, the digital bank of Mercado Libre, received a significant capital injection of USD$466 million.
Through its financial entity Mercado Crédito, it managed to secure a private financing line for this amount, through Citi subsidiaries.
These USD$466 million will be distributed between Brazil and Mexico, with USD$237 million coming from Banco Citibank SA and USD$229 million from Citibanamex in local currency.
The main objective is to expand credit capacity for consumers, entrepreneurs, and small businesses in both Latin American countries.
“At Citi, we work to be the best partner for our clients. We follow the regional growth of Mercado Libre, developing innovative and personalized financial solutions to increase the productivity of its credit portfolio,” explained Julio Figueroa, Citi’s General Director for Latin America.
Mercado Crédito, present in Brazil, Mexico, and Argentina, has experienced an annual growth of 22.6% in its credit portfolio, reaching USD$3.4 billion by the third quarter of 2023.
Approximately 20% of this total comes from sellers within and outside the market across the region.
The agreement with Citi, lasting for two years, follows a similar one signed in 2021 for USD$375 million, which was successfully executed.
Andrés Anavi, Senior Vice President of Credits at Mercado Pago, highlights this support as a vote of confidence that will drive financial inclusion in Latin America.
“The investment reinforces our commitment to hundreds of thousands of people and SMEs in Mexico and Brazil, so they can grow, achieve their goals, and contribute more value to society,” said Anavi.
Both entities, through a joint statement, detail that Mercado Crédito operates in Argentina, Brazil, and Mexico under different legal names, being a Financial Technology Institution (FTI) regulated in the case of Mexico.
