SAO PAULO (Reuters) -Latin American e-commerce giant MercadoLibre said on Monday it plans to invest 34 billion reais ($5.8 billion) this year in its top market, Brazil, representing a 47.8% increase in spending from a year earlier.
The amount, which also includes some operational expenses, is a record for MercadoLibre in Brazil, as the company has been ramping up investments in Latin America’s largest economy over the past eight years.
It marks an exponential increase from 2018, when MercadoLibre invested 1 billion reais in the nation.
The country currently responds for over 50% of MercadoLibre’s revenues.
MercadoLibre said in a statement that the investments will go toward logistics and technology for its e-commerce and fintech businesses, as well as in loyalty programs, entertainment, marketing and hiring.
The company, which trades on the Nasdaq, said the investments will allow it to create about 14,000 jobs this year in Brazil, reaching more than 50,000 employees in the country by the end of the year.
The investment announcement was made during an event with President Luiz Inacio Lula da Silva at one of the firm’s distribution centers near Sao Paulo.
Last month, the firm unveiled a $3.4 billion investment in Mexico, its second-largest market, for 2025.
($1 = 5.8955 reais)
(Reporting by Andre Romani; Editing by Kylie Madry)
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