Mercado Libre’s Brazilian arm (known locally as Mercado Livre) has acquired São Paulo-based logistics company, Kangu, for an undisclosed amount, expanding the scope of its delivery operations in Latin America.
With the transaction, Latin America’s largest e-commerce and fintech player will incorporate all of Kangu’s operations into its logistics network, including 5,000 delivery points spread over 700 cities in Brazil, Mexico and Colombia. However, the logistics company will remain independent and will continue to be managed by its co-CEOs, Ricardo Araujo and Marcelo Guarnieri.
“The transaction will increase operation efficiency … while allowing us to focus on delivering to Brazilian clients as quickly as possible,” said Renato Pereira, Mercado Libre’s director of corporate development.
Last year, Kangu’s revenues registered 100 percent year-on-year growth. Meanwhile, Mercado Envios, Mercado Libre’s logistics arm, delivered almost 650 million packages in 2020 compared to 306 million deliveries in 2019. By the end of the year, Mercado Libre says it will be operating eight distribution centers, 18 cross-docking centres and more than 100 last-mile centres in Brazil, its main market.
(Except for the headline, this story has not been edited by The Technology Express staff and is published from a syndicated fee)
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