The Latin American horizontal Mercado Libre is to receive a loan of $72 million from US bank Goldman Sachs to bolster its operations in Brazil. Specifically, the loan is destined to be used for Mercado Libre’s ‘Mercado Pago’ product which lends to small businesses and which received a loan of $125 million from the same source back in December.
According to the SVP of the company’s credit division Mercado Credito, Martin de los Santos, the company has seen demand for business loans shoot up among Mercado Libre’s vendors with traditional lenders unable to fill the void.
In addition to running horizontal marketplaces, Mercado Libre also owns and operates a number of top property portals in the region including portalinmobiliario in Chile, tuinmueble.com in Venezuela, and plusvalia.com in Ecuador. The company has seen its share price rise considerably during the pandemic as Latin Americans increasingly look online for goods and property. The company reported net profits of $55.9 million for the second quarter and its share price has increased 81% so far this year.