WASHINGTON, USA – 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.
