Mercado Livre’s net revenue (MELI34) totaled US$ 2.6 billion in the second quarter of 2022. A good part of this performance came from the group’s fintech arm, Mercado Pago, with revenue of US$ 1.2 billion.
According to Fernando Yunes, senior vice president of Mercado Livre in Brazil, in 2023 the revenue from Mercado Pago should surpass that of Mercado Livre, and the growth potential of this area is “enormous”.
“Next year, at some point, the fintech business, Mercado Pago, will have higher revenue than the commerce business and will continue to grow at a very fast rate. The market is huge, the entire financial market, the segments are huge, and Mercado Livre still has a small share,” he said.
He participated in Inside the Resultsa project in which the InfoMoney interviews CEOs and directors of important publicly traded companies, in Brazil or abroad. Executives talk about Q2 2022 balance sheet and outlook. To follow all the interviews in the series, subscribe to the InfoMoney YouTube channel.
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“Mercado Pago has been innovating a lot, launching many new products and solutions that help us follow this accelerated growth rate, from investment accounts, payments via Pix, super simple transfers, buying and selling cryptocurrency, now start safe. More than 40 million credit and debit cards are issued”, he emphasized.
André Chaves, senior vice president of strategy, corporate development and IR at the company, spoke about the organic growth of the developer team. “Our team of developers closed last year with 8,000 people. It will close this year close to 12,000 developers. We have been able to do this with our team of people very successfully,” he said.
“Eventually we can evaluate an M&A [fusão e aquisição] of a very specific type of talent. We’ve done it in the past, for example, to seek talent from machine learning. It can happen, but it will be very punctual, small companies. Mercado Livre has a DNA of organic construction, not acquisition”, he said.
Chaves and Yunes also talked about unfair competition from foreign websites, increased costs, logistics, the launch of Mercado Coin and its potential, loyalty program, synergy gains between commerce and fintech, ESG initiatives (environment, social and governance) and the arrival of new planes in the partnership with Gol. Watch the full live above, or click here.