The amount responds to the company's intention to continue growing in Brazil this year amid expectations of a slightly better market than in 2023.
Mercado Libre announced Tuesday plans to invest 23 billion reais (about US$4.62 billion) in Brazil this year, 21.1% more than in 2023.
The figure represents an acceleration in the pace of the company's annual investments in the country, its main market, after the 11.5% increase in 2023.
Mercado Libre's senior vice president and head of market operations in Brazil, Fernando Yunes, said that this acceleration is related to the company's intention to continue gaining presence in Brazil this year, amid expectations of a slightly better market compared to 2023.
The executive stressed that the investments are focused on the long term.
The company, which generates more than half of its revenue from Brazil, has invested heavily in this country in recent years driven in part by the e-commerce boom stemming from the pandemic. For comparative purposes, in 2019 Mercado Livre invested 2 billion reais in Brazil.
Yunes said the company seeks to focus its investments in Brazil in four areas in 2024, but mainly in logistics.
Mercado Libre also intends to invest in technology 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, managed by Mercado Ads. In this regard, the company wants to create new tools that can attract more audiences for advertisers, according to the executive.
