This Tuesday, March 13, Tech Crunch
reported that MercadoLibre announced that the e-commerce platform will be receiving a $750 million investment from PayPal
, and another $100 million from investment firm Dragoneer
, as part of a $1.8 billion equity offering to grow its business.
“The remaining $1 billion of the equity offering will be offered as common stock, the company said. PayPal and Dragoneer’s investments are contingent on the company raising the remainder publicly, although judging by the company’s track record as a public stock, and the fact that PayPal also announced this news on its own site, it doesn’t appear the parties are in great doubt about the deal’s completion.”
MercadoLibre, traded on Nasdaq
, has a current market cap of $21.75 billion.
President and CEO of PayPal, Dan Schulman
, said in a statement that
“Digital commerce in Latin America is experiencing tremendous growth and MercadoLibre is well-positioned for continued leadership. We’ve been impressed with the digital commerce and payments ecosystem Marcos and his team have built. We see great opportunities to integrate our respective capabilities to create unique and valuable payment experiences for our combined 500 million customers throughout the region and around the world.”
“Over the past 20 years, we have heavily invested in developing the preeminent e-commerce and FinTech ecosystem in Latin America. We are excited to welcome these investments which will allow us to significantly accelerate our growth. We look forward to accelerating our leadership in ecommerce and payments and foster financial inclusion in Latin America as a result of our alliance with a global leader in the industry such as PayPal.”