Mercado Libre boosts investment in Mexico
Mercado Libre announced an investment of $421 million dollars, 46% more than the previous year, in the platform in Mexico with the aim of scaling the performance of e-commerce, financial services and strengthen the logistics operation in the country, said David Geisen, director general of Mercado Libre Mexico.
The announcement was made during the MELIXP, a business fair in Latin America, where Mercado Libre invited different workshops, experiences and conferences, among which are the presentations of guests such as Muhammad Yunus, Nobel Peace Prize winner and creator of microcredit; Javier Verdura, the Mexican behind the design and innovation at Tesla; Sophia Amoruso, founder and CEO of Girlboss, to give lessons in entrepreneurship, innovation and marketing.
There were also Mercado Libre leaders such as Daniel Rabinovich, director of technology; Stelleo Tolda, director of operations, and Juan Martín de la Serna, senior vice president of Mercado Envíos.
PAYPAL ANNOUNCES ITS INTEGRATION WITH MERCADO LIBRE
On Monday, PayPal announced an expansion of its partnership with Mercado Libre, called "eBay Latin America," positioning the U.S. company to capture more market share in Latin America.
In a statement released on LinkedIn by its president and CEO, Dan Schulman, PayPal reported that users of Mercado Libre's digital payment technology, Mercado Pago, based in Brazil and Mexico, will now be able to use PayPal to make online payments at merchants with Mercado Pago integrated.
Its history is marked by innovation and development, giving rise to the business units Mercado Pago, Mercado Envíos, Mercado Créditos, Mercado Shops, and Mercado Libre Publicidad, forming a complete ecosystem of buying and selling products, services, payments, collections, credits and investments that promote financial inclusion. It has 7,200 employees.
According to Schulman, this integration means that the 300 million existing PayPal users will now have the opportunity to shop and make payments at "thousands of new merchants. PayPal will also become a payment option when paying on the Mercado Libre platform.
In addition, Schulman said, PayPal will offer Mercado Pago as a payment method at merchants that accept PayPal, extending PayPal's reach to the more than 48 million existing users of Mercado Pago.
PayPal is also expanding Xoom, its online money transfer service, to boost remittances paid into Mercado Pago's wallets in Mexico and Brazil, he added.
Citing PayPal and Mercado Libre's "shared vision," Schulman said companies are further integrating each other's technologies to promote a greater global presence to help businesses reach a wider group of buyers across borders, while connecting those buyers with financial technologies that can address their needs as consumers "underserved by the traditional financial system.
"This is just the beginning of things we can do together," he said. "By working closely together, we can jointly leverage our scale and platform capabilities to help drive inclusion and access in the global digital economy. I couldn't be happier to end 2019 with such significant development and look forward to an exciting and productive New Year.
PayPal's expanded integration with Mercado Libre follows PayPal's strategic investment in the e-commerce conglomerate earlier this year.
In March, Mercado Libre announced a $1.85 billion capital offering, which included PayPal's $750 million investment in the company through the purchase of common shares.
At the time, Mercado Libre CEO Marcos Galperin said the investment would accelerate the company's growth and leadership to "foster financial inclusion in Latin America".
CURIOUS FACTS ABOUT MERCADO LIBRE
In 1999 its first office was in a garage in the Saavedra neighborhood, north of Buenos Aires, and in the same 1999 began to operate Mercado Libre in Uruguay, Brazil, and Mexico.
The company is present in 18 countries: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, Guatemala, Mexico, Nicaragua, Panama, Peru, Paraguay, El Salvador, Dominican Republic, Uruguay, Honduras and Venezuela.
On the 20th anniversary of the country's and Latin America's largest online shopping hub, here are 20 curious facts you may not have known:
There are more than 20 million products published in Mercado Libre Mexico and more than two million sellers. In Latin America, there are 11 million sellers.
One of the most sold products in Mercado Libre Mexico in 1999 was the CD Todo está bien by Juan Gabriel. "For me to save myself from the end of the world," wrote one of the buyers.
There are more than 270 million registered Free Market users in Latin America and more than 30 million in Mexico. 80% of current registrations are done through smartphones.
Mercado Libre has more than eight thousand employees in the region (25% entered in 2018) and more than 220 in Mexico. In global figures, 60% are men and 40% women, but in Mexico, the proportion is 51-49.
Mercado Libre is registered in Mexico under the name DeRemate.com of Mexico, as can be seen at the bottom of the platform. In 2008, and after a decade of a dispute over online sales, Mercado Libre bought De Remate for 40 million dollars.
In the Hot Sale 2019, Mercado Libre sold more than three products per second and received 11 million visits a day.
In the category of books, the most sought-after is Baldor's Algebra and in the category of music, the albums of Mötley Crüe and Caifanes.
The record of purchases is held by a user in Mexico City with a total of $172,000 dollars (more than $3.2 million pesos) in transactions within the platform and more than 3,200 purchases.
Mercado Libre almost disappeared in early 2000 with the bursting of the dotcom bubble. It took the company six years to overcome the crisis.
In 2001, eBay (Marcos Galperin's inspiration) bought 19.5% of the shares of Mercado Libre. In 2016, eBay sold it back. They maintain a collaborative relationship and Mercado Libre sells eBay products within its platform through an official store.
Mercado Libre became the first technology company in Latin America to make its IPO on the Nasdaq in 2007. The New York Stock Exchange (NYSE) listed it under the name MELI.
To celebrate its 20 years, Mercado Libre launched a special category of Sustainable Products. "We celebrate by looking ahead," Galperin said. Responsible sales and purchases are trends.
Mercado Libre Mexico sells more than 100,000 products a day. Throughout the region, there are more than one million daily sales (11 per second) and six thousand searches per second.
Mercado Libre is a millennial company: 70% of its more than eight thousand employees are less than 30 years old.
Mexico is the third market with more sales in the region, after Brazil and Argentina. In a number of employees, however, it is below these two and also Uruguay and Colombia.
Mercado Libre has invested in three Mexican startups: Ibushak, an e-commerce solution for sales; Liftit, a cargo delivery platform; and Sirena, an omnichannel platform that connects customers and vendors in B2C businesses.
Mercado Libre opened two distribution centers in the State of Mexico with an area of 130 thousand square meters, allowing it to store more products and deliver thousands of them in less than 24 hours.
The top five searches in the entire platform is led by Bluetooth headphones, tennis, smartwatch, laptops and cell phones.