Mercado Livre increases investments in Brazil to R$23 billion in 2024

Mercado Livre announced this Tuesday that it plans to invest R$23 billion in Brazil in 2024, an increase of 21.1% compared to 2023.

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The amount represents an acceleration in the company’s annual investment pace in the country, its main market, after an 11.5% growth in investments in 2023.

The senior vice president of Mercado Livre and leader of the company’s marketplace operations in Brazil, Fernando Yunes, told Reuters that this acceleration can be attributed to the company’s intention to continue gaining share in Brazil in 2024 and expectations of a slightly better compared to last year.

However, the executive highlighted that investments are focused on the long term.

The company, which generates more than half of its revenue in Brazil, has increased investments in the country over the last few years, driven, in part, by the boom in e-commerce resulting from the pandemic.
For comparison purposes, in 2019, Mercado Livre invested R$2 billion in Brazil.

Yunes said that the company intends to concentrate its investments in the country this year in four areas, with logistics being the main one.
According to him, in addition to opening a new distribution center in Pernambuco in July or August, already announced previously, the company is evaluating two other warehouses in the country, as it aims to expand its presence in Brazilian regions where it has a smaller presence. Yunes, however , did not specify where these two possible centers would be located.

Mercado Livre also intends to allocate investments in technology, especially through the hiring of new employees, and in its financial unit, Mercado Pago, launching new products in the credit, insurance and investment segments, according to Yunes.
Another focus will be advertising, brought together under Mercado Ads. On this front, the company wants to create new tools that can attract more audiences to advertisers, according to the executive.