Magalu announces today the raising 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 advancements in technology, one of the key areas for executing the company’s long-term strategies. In 2025, Magalu’s focus is 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 includes incentives tied to improving socio-environmental management across the company’s ecosystem, with a focus on reverse logistics indicators and the disposal of electronic products for recycling. “The completion of this fundraising operation strengthens our capital structure and represents an important endorsement from IFC for our socio-environmental policies,” says Frederico Trajano, CEO of Magalu. “It’s a powerful signal that we are on the right path.”
The operation with IFC also extends the average maturity of the company’s debt, reinforcing its capital structure.
“Our investment in Magalu reinforces IFC’s commitment to supporting digital transformation and sustainable development in Brazil. By enhancing Magalu’s technological infrastructure, we aim to drive inclusive growth and environmental sustainability, while also promoting the creation of more skilled jobs in the Brazilian retail sector,” said Manuel Reyes Retana, Regional Director of IFC for South America.
ESG at Magalu
Throughout 2024, Magalu maintained its commitment to sustainability and expanded strategic fronts of socio-environmental impact, such as diversity and inclusion, entrepreneurship, improvements in packaging composition, energy consumption, and reverse logistics for electronics.
The electronics reverse logistics program currently includes 525 physical stores across the country authorized to receive this type of waste, which collected 31 tons of products last year. In addition to this volume, another 39 tons of electronic waste were collected during an Electronic Waste Drive held in Franca, in the interior of São Paulo, the company’s headquarters. In total, nearly 70 tons were sent for recycling—a volume 300% higher than that recorded in 2023.
Magalu also replaced the plastic padding in order boxes delivered to consumers with paper in its Época Cosméticos operation. The initiative will be extended to all Magalu operations by 2025. At the same time, the company ensured that all paper and cardboard supplies were certified by the Forest Stewardship Council (FSC) and reduced the use of plastic in product storage at distribution centers.
Magalu expanded its distributed energy generation network that powers its operations in five states (Bahia, Goiás, Mato Grosso, Pernambuco, and Rio Grande do Sul). In total, the company operates with 22 photovoltaic plants and one small hydroelectric plant, which meet the electricity demand of 65% of its branches. For units not eligible for this system, Magalu contracted wind power from the free energy market. As a result, 100% of the electricity consumed in its operations now comes from clean sources.
To strengthen the third sector in addressing gender violence, one of its flagship causes, the company created the Magalu Network for Women, which brings together 38 organizations benefiting from the Magalu Fund to Combat Violence Against Women. Launched in 2020, the fund supports initiatives for psychological support, legal guidance, and income generation for victims of domestic violence. To date, 4.7 million reais have been allocated to projects across Brazil.
Internally, in line with its Diversity and Inclusion Policy, the company strengthened its Affinity Groups, led by employees across four themes: Diversifica (LGBT+), Quilombo (Race), Para Todos (PwD), and Vozes (Gender). In 2024, the groups brought together over 600 people in weekly agendas and conducted 68 awareness training sessions for employees. In career development, Magalu launched the Move + Program, dedicated to developing women and Black individuals for future leadership positions. Aligned with its goals, the company ended the year with approximately 42% women and 41% Black individuals in leadership positions.
Since 2019, the company has maintained Mundo Social, a section dedicated to selling products with positive socio-environmental impact on its marketplace. In 2024, the platform featured 86 sellers and nearly 5,000 products. Mundo Social sellers, mostly Black women, benefit from reduced fees to sell on the platform and have access to business development programs, ranging from management mentoring to support in promoting products on social media.
