Mercado Libre, Brazil’s largest e-commerce platform and a key rival to rising Chinese competitors, announced a record-breaking 34 billion reais ($5.8 billion) investment in its Brazilian operations for 2025, Bloomberg reported.
Mercado Libre aims to expand its Brazilian workforce from 36,000 to 50,000 employees by the end of 2025, generating approximately 14,000 new jobs through the investment. Fernando Yunes, Senior Vice President of Mercado Libre in Brazil, stated that the initiative would be funded entirely through the company’s own cash flow, without requiring additional capital from the parent company.
Another priority for Mercado Libre is expanding its next-day delivery network in underserved areas through new fulfilment centres in Ceará, Bahia, and Paraná. The rollout will also add facilities in Rio Grande do Sul, Pernambuco, and the Federal District, as well as four new sites in São Paulo.
‘A few months ago, we said we’d expand from 10 distribution centres to 21 by the end of 2025. But we’re already at 17, and we’re now evaluating whether we’ll reach 25 or 27 by year-end’, Mr Yunes commented.
‘With the infrastructure we’re building, we’ll be ready for a war, if needed – to keep growing in Brazil’, he added, pointing to the rising presence of Asian platforms like Shopee, which currently stands as Mercado Libre’s most formidable competitor in terms of market share and growth.
In addition to logistics, the 34 billion reais investment will fund advancements in technology – a core focus for Mercado Libre – as well as the growth of its financial services, loyalty programmes, and entertainment platform, Meli+.
Mr Yunes explained that a large-scale investment of this kind raises the company’s fixed and operational costs, making robust revenue growth essential to maintain efficiency. Without continued sales momentum, he warned, Mercado Libre could lose its operating leverage, emphasising that ‘the system only works if supported by strong top-line growth’.
The investment announcement comes at a time when global e-commerce companies are navigating new headwinds. Starting 2 May, the US will impose a 30% import tax on direct-to-consumer shipments valued at up to $800 from Chinese platforms, marking a significant shift from the previous duty-free policy.
As a result, Chinese sellers may increasingly target alternative markets like Latin America, heightening competition and putting additional pressure on local players in the region.
