MercadoLibre, also known as Meli, is the leading ecommerce player and one of the leading fintech businesses in Latin America. Meli aims to enable ecommerce and several fintech solutions throughout Latin America by delivering a suite of technology solutions across the complete value chains of ecommerce and fintech. Today, Meli operates across 18 countries and maintains a market leading position in each of the major countries in Latin America.
Meli are heavily concentrated on both ecommerce and fintech, so the company could be considered the lovechild of Amazon, Alibaba and Square. Meli’s operations stem predominantly from ecommerce marketplaces, logistics, digital payments, and credits. The extensive logistics network arguably makes the business operations more complex and CAPEX demanding which in turn entails a wide moat to the whole ecosystem. Through the business model’s dependency on tangible assets on a large scale, Meli has built itself into a position which is very hard to replicate.
The global structural trends for Meli's biggest business units are very strong and have been going on for a long time, with no sign of stopping. Furthermore, the demographic conditions in Latin America suggest that growth for both e-commerce and fintech will continue at a rapid pace for a long time. Meli arguably has a perfect market position to take advantage of this growth.