Mercado Livre acquires Latin American logistics company Kangu

Mercado Livre, a Latin American e-commerce and financial services technology company , has announced the acquisition of Kangu, a logistics company operating in Brazil, Colombia and Mexico.

Mercado Livre is a strategic partner of Kangu and has expanded its involvement through this acquisition. This move once again confirms the platform's development strategy of increasing investment in logistics networks, improving seller efficiency, and providing faster logistics services to Brazilian customers .

Kangu currently has more than 5,000 collection and delivery points, more than half of which are in Brazil. The company provides services to a number of companies, including Mercado Livre, connecting e-commerce sellers with offline stores. These stores form an efficient network where sellers can place their products for delivery and customers can pick up their purchases from there.

Renato Pereira, Mercado Livre’s director of corporate development, said Kangu is already an important part of its ecosystem, with its delivery points connecting Mercado Livre’s buyers and sellers, and the acquisition will increase its operational efficiency and capabilities.

Leandro Bassoi, vice president of Latin American logistics at Mercado Livre, said that while it is exploring solutions internally, it is also looking for partners and development opportunities to continuously shorten delivery times. The company currently provides next-day delivery services in 2,100 cities in Brazil and same-day delivery services in dozens of regions.

Bassoi also mentioned that in addition to the logistical synergies, Kangu will also promote sustainable development to increase its social impact and generate income for small shops.

It is reported that in addition to the collection and delivery point business, Kangu's business model also includes transportation services and reverse logistics supported by external partners. Thanks to investment in technology, especially intelligent data management, Kangu is able to optimize delivery and provide additional services.

According to the editor, Kangu will maintain independent operation after the acquisition. This acquisition is part of Mercado Livre's expansion. The acquisition of Kangu will strengthen its business ecosystem. In addition to helping its e-commerce business grow, the logistics services provided by third-party companies will shorten delivery time and help develop its logistics network in Brazil.

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