Photo credit: IDB Invest
The deal includes an innovative source of financing in e-commerce through a mezzanine facility.
IDB Invest and Blue Like an Orange Sustainable Capital provided a $22 million financing package to Merqueo, the first full-stack e-grocery delivery player in Latin America with operations in Mexico, Colombia, and more recently in Brazil. This includes a $4 million mezzanine facility from IDB Invest and $18 million mobilized from Blue like an Orange Sustainable Capital. The proceeds will help Merqueo expand in Brazil and enhance its technological platform.
The financing will foster the growth of the retail supply chain and job creation since Merqueo is expected to strengthen and increase its backward linkages in its supply chain. The company will increase the purchases to domestic suppliers in Brazil, where 80% are micro, small and medium enterprises (MSMEs). It will also boost job creation expecting to hire more than 2,000 workers by 2025.
IDB Invest will also offer advisory services to develop a robust and actionable sustainability strategy to better identify, manage and measure Environmental, Social and Governance (ESG) aspects across its operations in Brazil, Colombia and Mexico.
The deal builds upon IDB Invest’s continued efforts to promote alternative sources of financing to strategically important economic sectors. The investment supports IDB Invest’s strategy to drive innovation, the digital economy and as tech disruption of traditional businesses, such as retail, to increase efficiency and benefit consumers.
The financing complements another series of investments in Merqueo, including one carried out in 2021 when IDB Invest became a shareholder of the company and supported its launch in Mexico. Additionally, this is the fifth joint deal between Blue like an Orange and IDB Invest, as part of a co-financing framework agreement to catalyze investments with high-development impact in the region.
The deal is expected to contribute to five United Nations Sustainable Development Goals (SDGs): Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Reduced Inequalities (SDG 10) Responsible Consumption and Production (SDG 12), and Partnerships for the Goals (SDG 17).
This article was originally published by IDB Invest.
