Citi has injected a total of US$466 million into Mercado Pago’s operations in Mexico and Brazil, earmarked to facilitate credit access for SMEs. The funding aims to enhance Mercado Pago’s lending capabilities, benefiting consumers, entrepreneurs, and small businesses in both countries.
To fortify Mercado Pago’s financial standing, Citi extended a financing line through its Mexican and Brazilian subsidiaries, Citibanamex and Banco Citibank de Brazil, respectively. The allocated funds are divided between both countries, with US$229 million directed to the Mexican division and US$237 million designated for the Brazilian market.
According to Julio Figueroa, Director for Latin America, Citi, the institution aims to be a strategic partner, supporting Mercado Libre's regional growth by developing tailored and innovative financial solutions to enhance the productivity of its financing portfolio. Mercado Pago has extended over 12,000 loans, surpassing a total value of US$67 million since initiating SME loan operations two years ago, reports DF Sur.
“Mexico was particularly strong with revenue growing above 60% YoY, while Brazil also showed a great performance at around 40% growth. These two countries have increased their contribution to our total revenues,” said Martín de los Santos, CFO, Mercado Libre, during the company’s 3Q23 results conference call.
In the third quarter results, Mercado Libre’s fintech sector reported off-platform Total Payment Volume (TVP) of US$35.5 billion, boasting 48.8 million active fintech users. The credit portfolio achieved a value of US$3.4 billion, maintaining a strong Non-Performing Loan Ratio (NIMAL) of 37.4%. The issuance of over 1 million credit cards contributed to a Total Payment Volume surpassing US$1 billion for the first time.
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