US payment company PayPal has committed to invest US $750 million in Mercado Libre common shares, the Latin American e-commerce group reported Monday night.
The investment is linked to a public offering of ordinary shares of the Latin American site of about US $1 billion. The company has not reported the participation of PayPal in the company after the completion of operations.
Mercado Libre said in a statement that it intends to use the resources to “continue to expand its e-commerce platform, strengthen logistics infrastructure and invest in solutions that guarantee even more solidity for the company’s position as a provider of financial and payment solutions.”
The public offering is being advised by Goldman Sachs, JP Morgan and Morgan Stanley.
In 2018, transactions in Mercado Libre’s electronic payment platform increased by 70%, totaling 389 million transactions and US $18 billion in total volume, the company reported.
“Digital commerce in Latin America is experiencing enormous growth … we are impressed with the ecosystem of digital commerce and payments” of the Free Market, the president of PayPal, Dan Schulman, said in the statement.
In addition to PayPal, the investment company Dragoneer Investment Group has committed to investing US $100 million in convertible perpetual preferred shares of the free market.
The investments of PayPal and Dragoneer depend on the conclusion of the public offering, said the company created in Argentina.