Latin American e-commerce colossus Mercado Libre announced on Thursday (24) that it will invest $1.4 billion in its operation in Mexico, an increase of about a third compared to what was invested last year. According to the company, the operation in Mexico had the highest net revenue in the fourth quarter, with a 33% increase in sales volume (GMV)
“Mexico is a top priority country,” said David Geisen, the director of Mercado Libre in Mexico, noting that the online retailer has invested $2.1 billion in the country over the past five years.
The Argentine company said it plans to innovate in technology, bolster its logistics operations and develop “priority” categories in its online market, such as apparel and supermarkets.
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When asked if inflation could affect the company, Geisen said that Mercado Libre expects a migration of consumers to e-commerce, which offers more alternatives and lower prices.
In the 2021’s earnings results released on Tuesday (22), what really caught analysts’ attention was precisely the fact that the approach taken so far by the third-largest publicly traded South American company will practically not change in the face of the global and local scenario of persisting inflation and rising interest rates.
MeLi saw its fourth-quarter net revenue total $2.1 billion, up 60.5% from a year earlier. It was the company’s best quarterly result ever. In Brazil, which accounts for more than half of the company’s revenue, the gain was 56% in dollars and 62.4% in reais.