Mercado Crédito, Mercado Libre’s credit unit, recently obtained a private financing line from Citi for US$375 million. This money will go towards expanding their capacity for loans granted to consumers and entrepreneurs in Brazil and Mexico.
US$150 million will be allocated to Mexico, while US$225 million dollars will go to Brazil. This investment will also help them double their storage space, boost their financial technology services and create 4,700 new jobs.
Mercado Libre’s Momentum
In 2020 alone, this company’s e-commerce revenue grew by 90% in Latin America, according to Bloomberg Intelligence. They also didn’t do too poorly in terms of buyers: in 12 months they grew 40%, reaching 65 million at the end of March.
This growth undoubtedly boosted other business verticals such as payments, loans, and logistics.
Mexico and Brazil have become the two main markets for the Latin American e-commerce giant. Recently, Mercado Libre announced their plan to invest $10 billion reais (about US$1.8 billion) in Brazil to expand its logistics network; 150% more than in 2020.
Last November they also announced the launch of a delivery app in Brazil country to optimize deliveries.
In Mexico they have their fintech initiative: Mercado Pago. According to El Financiero, their four-year goal is to digitize payments in 335 public markets and 51 flea markets in Mexico City, benefitting more than 20,000 tenants in the country’s capital.
You may also be interested: Mercado Libre and Kaszek Ventures will seek to acquire a company in LATAM via SPAC
