Mercado Livre to Invest R$ 19 Billion in Brazilian Operation

Investment represents an increase of nearly 12% compared to last year’s; capital will be used to improve logistics, technology, and other areas.

This represents an increase of nearly 12% compared to the company's investment last year

By: SiiLA News

05/29/2023

Mercado Livre, a leading e-commerce company, has disclosed its intentions to invest a staggering R$19 billion (USD $3.8 billion) in its Brazilian operation. This represents an increase of nearly 12% compared to the company's investment last year. The company will use the capital to improve its logistics operation, introduce new technology, ramp up its marketing and advertising efforts, scale its financial product, Mercado Pago, and to improve the customer experience.

As Brazil's e-commerce market continues to grow, Mercado Livre, one of the largest players in Latin America, has been expanding its footprint across the country. In just two years, between 2020 and 2022, the company leased an astounding 1 million square meters of industrial space, including prime properties located in São Paulo, Minas Gerais, Fortaleza, Bahia, and Pará. According to SiiLA, Mercado Livre's industrial portfolio in Brazil spans a whopping 1,200 million sqm, cementing the company's position as the largest industrial tenant in the country.

Mercado Livre Occupancy in Industrial Properties in Brazil

Mercado Livre's strong performance in Q4 2022, which included an impressive absorption of 310,002 m² in industrial space, reflects the company's increased investment in Brazil and confidence in its offerings, according to Fernando Yunes, senior vice president of commerce and leader of Mercado Livre in Brazil. "We remain confident in the quality of our ecosystem's offerings after our excellent performance last year and increased investment in Brazil. This positions us to take advantage of development opportunities and continue being the top choice of millions of people," said Yunes.

Yunes emphasized Mercado Livre's unwavering commitment to supporting the development of the sector and its millions of users who generate income from the company's ecosystem in Brazil, a market that the company strongly believes in. "As market leaders, we have taken on the mission of leveraging the sector's development and supporting our millions of users who generate income and development from our ecosystem. We firmly believe in Brazil's potential," he added.

If you're keen on delving deeper into Mercado Livre's impressive growth and its industrial property leasing strategy in Brazil, SiiLA Market Analytics can offer valuable insights. With comprehensive data and analytics on commercial real estate, SiiLA provides a detailed understanding of the trends and dynamics shaping the Brazilian market. By leveraging SiiLA's insights, you can gain a better understanding of how Mercado Livre's leasing activities fit into the broader landscape, and how the company's strategic moves could influence the Brazilian e-commerce market in the future.

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