Magalu raises 130 million dollars from IFC, World Bank Group.Resources will be invested in technology

Magalu announces today the raising of 130 million dollars (approximately 765 million reais) with 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 key areas for the execution of the company's long-term strategies. In 2025, Magalu focuses on the consolidation of its business ecosystem, which includes the retail platform, logistics services, payments and credit, Magalu Ads and Magalu Cloud.

The contract with IFC has a five-year term and has incentives linked to the improvement of socio-environmental management throughout the company's ecosystem, especially for reverse logistics indicators and the 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 is a powerful sign that we are on the right track.”

The operation with IFC also has the consequence of extending the average maturity of the company's debt, reinforcing the 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 seek to drive inclusive growth and environmental sustainability, as well as promoting the generation of more skilled jobs in the Brazilian retail sector,” 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 logistics of electronics. 

The reverse logistics program for electronics currently has 525 physical stores in the country that were able to receive this type of waste and that collected 31 tons of products last year.In addition to this volume, another 39 tons of electronic waste were collected in an Electronic Waste Mutiny held in Franca, in the interior of Sao Paulo, the company's headquarters.In total, almost 70 tons were destined for recycling 300% volume higher than that recorded in 2023.

Magalu also changed the plastic filling of the order boxes delivered to consumers by paper, in its operation of the Cosmetics Season.The initiative will be extended to the entire Magalu operation still 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 distribution centers.

Magalu expanded the distributed power generation network that supplies its operations in five states (Bahia, Goias, Mato Grosso, Pernambuco and Rio Grande do Sul). Altogether, the company operates with 22 photovoltaic plants and a small hydroelectric power plant, which meet the electricity demand of 65% of the branches. For units that are not able to use this system, Magalu contracted wind source in the free energy market.Therefore, today 100% of the electricity consumed in the operation originates in clean sources.

To strengthen the third sector in the fight against gender violence, one of its flags, the company created the Magalu for Women Network, which brings together 38 organizations that benefit from the Magalu Fund to Combat Violence Against Women. Launched in 2020, the fund supports psychological care initiatives, legal guidance and income generation for victims of domestic violence. To date, 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, led by employees in four themes: Diversifica (LGBT+), Quilombo (Race), Para Todos (PcD) and Voices (Gender). In 2024, the groups gathered more than 600 people in weekly agendas and promoted 68 awareness-raising positions for employees. In the development of careers, Magalu launched the Move+ Program, dedicated to developing women and black people to occupy leadership positions.In line with the 1 year 403 black people in the company.

Since 2019, the company has maintained Mundo Social, a section dedicated to the sale of products with positive socio-environmental impact in its marketplace. In 2024, the platform gathered 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 businesses, which offer from management mentoring to support in the dissemination of products on social networks.