Shopee, the Singapore-based e-commerce giant, has acquired the local credit arm of Brazilian fintech Blu, marking a strategic move to provide direct credit services in Latin America’s largest economy. The deal, with preliminary approval from Brazil’s antitrust regulator Cade, follows Shopee’s aim to enhance its Brazilian operations and reduce costs, as highlighted in a November legal filing.
19 December 2023 – Singapore-based e-commerce giant Shopee has acquired the local credit arm of Brazilian fintech Blu, as revealed in a regulatory filing on Monday. The move, yet to be officially announced by the companies, secured preliminary approval from Brazil’s antitrust regulator Cade, according to the country’s official gazette.
The undisclosed deal signifies Shopee’s strategic push to offer credit directly to customers in Latin America’s largest economy. The acquisition aligns with Shopee’s November legal filing, where it highlighted the potential for business growth and cost reduction in its Brazilian operations, especially as it planned to conclude a partnership with a local firm that currently facilitates customer credit services.
Blu, supported by U.S. private equity firm Warburg Pincus, has not disclosed the financial terms of the deal. Both Shopee and Warburg Pincus have not yet responded to requests for comments, and attempts to reach Blu were unsuccessful.
Since entering the Brazilian market in 2020, Shopee, owned by Singaporean e-commerce firm Sea, has established nine distribution centers. The acquisition underscores Shopee’s commitment to expanding its presence in Brazil, marking its first venture outside Asia, where it currently collaborates with over three million local merchants. In a noteworthy development, Brazil’s central bank granted Shopee approval to operate as a payment institution last year.
