Shopee Expands in Brazil by Acquiring Blu's Local Credit Division

19 Dec, 2023

Shopee Expands in Brazil by Acquiring Blu's Local Credit Division

Shopee, the eCommerce entity under Singapore's Sea ownership, is expanding its Latin American foothold by acquiring the local credit division of Brazilian FinTech firm Blu.

Reported by Reuters on Monday (Dec. 18), this strategic acquisition, preliminarily approved by Brazil's antitrust regulator CADE, positions Shopee to provide direct credit services to Brazilian consumers.

Although financial specifics remain undisclosed, the move aligns with Shopee's agenda to grow its Brazilian operations, cut costs, and terminate partnerships with local entities for customer credit provision.

Having entered Brazil in 2020, Shopee currently operates nine distribution hubs within the nation. This acquisition marks Shopee's initial foray outside Asia, underscoring its dedication to tapping into Latin America's largest economy.

With over 3 million local merchants in Brazil, Shopee gained approval from Brazil's central bank in the previous year to function as a payment institution.

The authorization granted to Shopee in May 2022 allows the firm to manage prepaid payment accounts, facilitating prior fund deposits.

Shopee's ascent as a prominent eCommerce platform in Brazil stems from its low-cost marketplace, drawing in a substantial user base.

In another development, Latin American FinTech firm Clara launched a payment account in Brazil, broadening payment options, including bank slips and express wire transfers.

Simultaneously, in November, Jeeves and Bexs collaborated to introduce a fully digital platform for cross-border business payments from Brazil, streamlining B2B transactions in various currencies with digital settlements and rapid payouts through an efficient expense management system.