Mercado Libre will invest $740 million in Brazil, in part to enhance logistics and operations. The move is expected to generate 5,000 jobs in the state of São Paulo and employ a further 2,000 in other parts of the country by the end of 2021.

“Mercado’s investment will be even greater next year,” tweeted João Doria, governor of São Paulo. Brazil is the main market for the retailer, representing around 56 percent of its net revenue.

Fernando Yunes, senior vice president of Mercado Libre in Brazil estimated about 85 percent of its vendors are located in São Paulo and that  “next year, investments should be even higher. We see a huge potential for growth in e-commerce,” The Rio Times Journal reported.

Mercado Libre has a presence in 18 countries, making it an important e-commerce partner for global brands like Guess, Adidas, Nike, Estée Lauder and L’Oréal across Latin America.