Shopee Acquires Blu’s Local Credit Arm, Grows Presence in Brazil

Shopee, an eCommerce firm owned by Singapore-based Sea, is expanding its presence in Latin America with the acquisition of the local credit arm of Brazilian FinTech company Blu.

This strategic deal, which has received preliminary approval from Brazil’s antitrust regulator CADE, will enable Shopee to offer credit directly to customers in the country, Reuters reported Monday (Dec. 18).

While the financial details of the acquisition have not been disclosed, this move aligns with Shopee’s strategy to grow its Brazilian business and reduce costs, according to the report. It will also allow Shopee to end its partnership with a local firm through which it offers customer credit.

Shopee entered the Brazilian market in 2020 and operates nine distribution centers in the country, the report said.

The acquisition of the local credit arm of Blu marks Shopee’s first expansion outside of Asia and demonstrates its commitment to tapping into the potential of Latin America’s largest economy, per the report.

Shopee has more than 3 million local merchants in Brazil, and the company gained approval from Brazil’s central bank to operate as a payment institution last year, according to the report.

When Shopee received authorization to operate as a payment institution in the country in May 2022, a notice in the government’s official gazette said the firm will be able to “manage prepaid payment accounts, in which funds must be previously deposited.”

Shopee has become one of the biggest eCommerce apps in Brazil, attracting users to its low-cost marketplace.

In another recent development in the country, Latin American FinTech company Clara launched a payment account in Brazil in November. Clara’s expansion will give clients in Brazil access to a wider array of payment methods, including bank slips and express wire transfers.

Also in November, Jeeves and Bexs partnered to launch a fully digital platform for cross-border business payments out of Brazil. With this collaboration, Jeeves makes it easier for businesses operating out of Brazil to make B2B payments in U.S. dollars and other currencies. The firm provides fully digital settling on both sides, quick payouts and convenience via its expense management platform.