Magalu today announces the uptake of 130 million dollars (approximately 765 million reais) from the International Finance Corporation (IFC), the largest global development institution focused on the private sector and emerging markets and a member of the World Bank Group. The funds raised will be used for advances in the technology area, one of the fundamental areas for the execution of the company’s long-term strategies. In 2025, Magalu focuses on consolidating its business ecosystem, which includes the retail platform, logistics services, payments and credit, Magalu Ads and Magalu Cloud.
The contract with IFC has a term of five years and has incentives linked to the improvement of socio-environmental management throughout the company’s ecosystem, with emphasis on reverse logistics indicators and destination of electronic products for recycling. “The celebration of the fundraising operation strengthens our capital structure and represents an important endorsement of IFC for our socio-environmental policies”, says Frederico Trajano, CEO of Magalu. “It’s a powerful sign that we’re on the right track.”
The operation with IFC also results in the extension of the average maturity term of the Company’s debt, reinforcing the capital structure.
“Our investment at Magalu reinforces IFC’s commitment to support digital transformation and sustainable development in Brazil. By improving Magalu’s technological infrastructure we seek to drive inclusive growth and environmental sustainability, in addition to promoting the generation of more qualified jobs in the Brazilian retail sector,” he said. Manuel Reyes Retana, IFC Regional Director for South America.
ESG in Magalu
Throughout 2024, MAGALU maintained its commitment to the sustainability agenda and expanded strategic fronts of socio-environmental impact, such as diversity and inclusion, entrepreneurship, improvements in packaging composition, energy consumption and reverse electronics logistics..
The electronics reverse logistics program currently has 525 physical stores in the country capable of receiving this type of waste and who collected 31 tons of products last year. In addition to this volume, another 39 tons of electronic waste were collected in an electronic waste task force carried out in Franca, in the interior of São Paulo, the company’s headquarters. In total, almost 70 tons were used for recycling — a volume 300% higher than that recorded in 2023.
The Magalu also exchanged the plastic filling of the order boxes delivered to consumers for paper, in its Época Cosméticos operation. The initiative will be extended to the entire operation of Magalu in 2025. In parallel, it ensured that all paper and cardboard inputs were certified by the Forest Stewardship Council (FSC), and reduced the use of plastic in the storage of products in the distribution.
Magalu expanded the distributed energy generation network that supplies its operations in five states (Bahia, Goiás, Mato Grosso, Pernambuco and Rio Grande do Sul). In all, the company operates with 22 photovoltaic plants and a small hydroelectric power plant, which supply the electricity demand of 65% of the branches. For units that are not able to use this system, Magalu hired a wind source in the free energy market. As a result, today 100% of the electricity consumed in the operation originates from clean sources.
To strengthen the third sector in the fight against gender violence, one of its banners, the company created the Magalu pelas Mulheres Network, which brings together 38 organizations benefiting from the Magalu Fund to Combat Violence Against Women. Launched in 2020, the Fund supports psychological hosting initiatives, legal guidance and income generation for victims of domestic violence. So far, 4.7 million reais have been allocated to projects throughout Brazil.
Internally, in line with the diversity and inclusion policy, the company strengthened the affinity groups, conducted by employees in four themes:  Diversifies (LGBT+), Quilombo (Race), For All (PCD) and Voices (Gender). In 2024, the groups gathered more than 600 people on weekly agendas and promoted 68 employee awareness training. In career development, Magalu launched the Move + program, dedicated to developing black women and people to occupy future leadership positions. In line with the proposed goals, the company closed the year with about 42% of women and 41% of black people in leadership positions.
Since 2019, the company has maintained the social world, a section dedicated to the sale of products with a positive socio-environmental impact on its marketplace. In 2024, the platform brought together 86 sellers and almost 5,000 products. The sellers of the social world, mostly black women, have a reduced rate to sell on the platform and have access to development programs for their business, which offer from management mentorships to support in the dissemination of products on social networks.
