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MercadoLibre to fund over USD 700 mln in Brazil

Wednesday 6 May 2020 14:20 CET | News

Argentina-based ecommerce company MercadoLibre has planned to invest USD 717 million in Brazil.

According to Reuters.com, the lockdown increased the number of smaller vendors searching for digital platforms such as MercadoLibre to continue selling their products and preserve cash flow. Therefore, the company has hired 200 direct employees and 2,500 third-party contractors since the second half of March 2020 to strengthen its logistics team and cope with a higher volume of deliveries. As a result, the company announced an increasing number of consumers shopping online in April 2020. 

Besides, the company’s net revenue grew by 37.6%, in the first quarter, compared to 2019’s USD 652 million. Only in Brazil, which accounts for 61% of the total, its net revenue climbed by 31.4% in US dollar terms and 55% in Brazilian real terms year-on-year, Reuters stated.

However, MercadoLibre also reported a net loss of USD 21.1 million after taxes in the quarter ended on 31 March 2020 compared with a loss of USD 54 million in the fourth quarter. Yet, the company’s officials expect their consumers to keep using online channels even after the lockdowns are over and plan to open a fourth distribution center in Brazil’s northeastern region.

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Keywords: MercadoLibre, ecommerce, funds, Brazil, online shopping
Categories: Payments & Commerce
Companies:
Countries: Brazil
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