PayPal will invest $750 million, and the investment firm Dragoneer another $100 million, in Latin American marketplace powerhouse MercadoLibre, which serves 18 countries in the region. These investments are driven by the quickly growing Latin American e-commerce market and are part of $1.85 billion investment in MercadoLibre. The deal will only be finalized if the remaining US$1 billion can be raised through common stock offerings, something that most agree is likely given the response to the announcement.
PayPal aims to use this investment as a way to “create unique and valuable payment experiences” for customers, Dan Schulman, president and CEO of Paypal, said in a statement. For Dragoneer, the main aim of the investment is to invest in financial technologies to help the company hold its position as a provider of technology and payment solutions.