MercadoLibre said on Thursday it will invest US$420 million this year in Mexico, its fastest-growing market, up 46 percent from 2019.

The Argentina-based company will focus its spending in Mexico on logistics, financial services and expanding its brands and products, said MercadoLibre’s Mexico chief executive David Geisen.

General Director in Mexico David Geisen said the resources will be earmarked to increase its product line, but mainly to strengthen its logistics network and to launch investment accounts for individuals, its new financial product.

“We are going to open more distribution centers, we will not buy any warehouse but we will rent some that do not exist or is about to be built. Our business does not involve owning our infrastructure,” he pointed out in a press conference held at the Mexico Libre Experience (MeLiEXP) in Mexico City. 

“Mexico keeps growing far above Latin America as a whole, and it’s a key market for MercadoLibre this year,” Geisen added.

MercadoLibre’s net revenue in Mexico jumped 152 percent last year to US$275 million, Geisen pointed out. Sales in the country rose more quickly than the company’s other core markets, Argentina and Brazil, in each quarter.

Geisen said MercadoLibre has not been affected by the coronavirus outbreak in China, but that some companies that sell on the platform had reported longer wait times for products imported from China.