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Successful Sadesa spin-off can keep growing

01/10/2014
A spin-off business that Argentinean tanning group Sadesa launched 15 years ago now has a market capitalisation ($5 billion) that puts it in the country’s top ten, projected revenues for 2014 of $700 million (40% up on 2013), and 2,300 employees across Argentina, Brazil, Chile, Venezuela, Colombia and Mexico. However, the company at the heart of this success story is not involved in the production of leather, but is Mercado Libre (Free Market), Latin America’s biggest online shopping platform.

Marcos Galperín, a member of the family that owns and runs Sadesa, set up Mercado Libre (popularly known as ‘Meli’) in a garage at the tanning group’s headquarters just before the turn of the century. Now online shoppers across the Americas use it to buy and sell cars, clothes, computers, furniture, fashion, food and even pets.

Mr Galperín recently told local media in Buenos Aires that 150,000 users earn a living from selling goods on Mercado Libre, which he said shows that companies such as his can make retail “more democratic”.

He said the business still has potential for high levels of growth because at present only 5% of purchases by Argentinean consumers is online, compared to 15% in the US.



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