Marcos Galperín raises $ 233 million to grow the Mercado Pago business in Brazil and Mexico

Share This Post

- Advertisement -

Marcos Galperín raises $ 233 million to grow the Mercado Pago business in Brazil and Mexico

Marcos Galperín, founder and CEO of Mercado Libre.

- Advertisement -

In the midst of a fi changeglobal financial difficulties that make it difficult for fintech firms in the region to obtain financing, the giant Mercado Libre obtained around 233 million dollars in a private investment round which it will use to grow its lending business through its Mercado Pago portfolio in Brazil and Mexico.

- Advertisement -

The investor is Goldman Sachs, which between 2020 and 2021 had already contributed around 250 million dollars. Totalhas already disbursed nearly $ 500 million in Mercado Libre: This is one of this bank’s largest fintech bets in the region.

Specifically, as published Bloomberg lineAbout $ 106 million will go to the Brazilian consumer and business credit market, while another $ 127 million will go to Mexico. Both are the most relevant countries for the company today. Mercado Pago’s credit business in Argentina is financed through the local capital market.

“With the new resources, MercadoLibre reaches the goal of US $ 1,000 million of capital earmarked for the banking business of the lending businessor, “said Facundo Cuppi, director of Loan Strategy and Operations for Latin America at MercadoLibre. As of November 2021, Citigroup had loaned the company $ 375 million.

“Mercado Crédito and the entire MercadoLibre ecosystem are a unique platform to improve the flow of capital for andcompanies that do not have access to creditor through conventional means, ”said Santiago Rubin, Goldman Sachs CEO, Head of Technology, Media and Telecommunications for Latin America.

Through Mercado Pago credits available in the regionn, more than USD 7,551 million have already been lent, in 175 million consumer loans and working capital for SMEs. According to the company’s estimates, half of those who apply for a loan through this app had never received a loan and 80% apply for another loan once the first one has been repaid.

This disbursement is a signal for the region’s fintech sector, which must reinvent itself in the face of the decline in the arrival of investments from risk capital and other types of financing this year, due to the Federal Reserve Rate HikeL. In the industry, they agree that investors will continue to support the industry, but will only focus on the “good stories”.

It is also a good sign for Mercado Libre investors. Shares of the company have fallen by more than 50% so far this year hit by the collapse of global technology companies, which have caused the Nasdaq index to lose nearly 28% since January.

NEITHER

Source: Clarin

- Advertisement -

Related Posts