Mercado Livre expands credit funding and branded entertainment

Mercado Livre is implementing new financial and marketing strategies to support its rapid growth in Latin America. To fund the expansion of its fintech operations, the company has entered into a revolving agreement to sell up to US$ 150 million in loan receivables. In the second quarter, US$ 53 million has already been ceded under this structure, following CEO Ariel Szarfsztejn’s previous indications that selling parts of the credit portfolio was a viable funding mechanism.

The Mercado Crédito portfolio reached US$ 16.4 billion at the end of June, representing a 75% increase over twelve months. While the expansion has increased funding costs—contributing US$ 274 million to expense increases in the first half of the year—delinquency rates remain near historical lows. The company is diversifying its funding through capital injections in Brazil, financial letters via Mercado Pago, and FIDCs.

Simultaneously, Mercado Livre is expanding its brand presence through branded entertainment. The e-commerce leader has become an official sponsor of the Turkish soap opera “Amor de Aluguel,” which is broadcast for free on the Noverama TV YouTube channel. This partnership targets the program’s female-dominated audience, which comprises over 85% of viewers, leveraging the growing trend of consuming long-form digital content on connected TVs.