(Photo credit: Magalu)

• Project will support technology investments, expand cloud services, and help MSMEs compete in a growing e-commerce market

   

WASHINGTON, D.C. – IDB Invest has signed a financing agreement with Magazine Luiza S.A. (Magalu) for $50 million to support the company’s digital transformation and help strengthen Brazil’s digital ecosystem. The funds will back Magalu’s plans to upgrade logistics capabilities, digital services for merchants, cloud services, AI projects, and focus on improving access and efficiency for micro, small, and medium enterprises (MSMEs).

The financing package consists of a senior unsecured loan with a five-year term and a two-year grace period. The financing will fund capital expenditures planned for 2025–2026, including the development of Magalu Cloud—a public cloud service designed for Brazilian MSMEs—and the implementation of AI tools and advanced networking solutions to enhance business performance.

The initiative is expected to deepen the digitalization of Brazil’s retail sector and enable more MSMEs to participate in the country’s growing e-commerce market. The company provides onboarding, logistics, and financial services to small businesses—many in underserved areas—helping them scale and reach national markets. In 2024, more than 180,000 MSMEs used the platform, which is projected to double by 2030.

Brazil’s e-commerce sector is one of the fastest-growing globally, with revenues expected to increase from $51.2 billion in 2022 to reach $81.3 billion by 2027, according to Business Wire. Strengthening MSMEs’ digital competitiveness is key to ensuring economic growth in this expanding market. IDB Invest’s support will complement the company’s existing environmental, social, and corporate governance action plans.

This project aligns with the IDB Group's initiatives to accelerate growth in Brazil by strengthening institutions and enhancing productivity, which constitute one of the key pillars of the strategic agreement with the country through 2027.

About IDB Invest

IDB Invest is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $21 billion in assets under management and over 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries. Visit our website www.idbinvest.org/en. 

About Magalu

About Magalu: Magalu is the company leading the digitalization of Brazilian retail. Since May 2011, it has been listed on the Novo Mercado segment of B3. In recent years, it has made several acquisitions, consolidating its national presence. In addition to more than 1,250 stores across 20 states in Brazil, Magalu operates six online brands (Netshoes, Zattini, Época Cosméticos, Estante Virtual, and KaBuM!), has 360,000 sellers on its marketplace, and runs the food delivery platform aiqfome. The company's app is accessed by over 50 million monthly active users. Its people management policies have received multiple awards.