Our Ecosystem - Magazine Luiza | Investor Relations

Magazine Luiza - Retail

We believe our multichannel approach represents a fundamental way toward achieving leadership in all of our markets. It provides competitive advantages and sets us apart because we focus on the development of each channel as part of a broader interaction strategy that builds a unique relationship with our clients.

Our model benefits clients and speeds up the operations through diverse sales channels. Our multichannel strategy consists of:

Offering clients a sales platform in six distinct formats –physical stores, virtual stores, telesales, e-commerce platform (1P + 3P), Parceiro Magalu (Social Commerce) and B2B;
Making our products available throughout the country, including the states where the company has no physical presence;
Facilitating the purchase of products, when and how the clients desire, through a Data-Drive culture that stores data from all channels;
Expanding the portfolio with the further integration of our channels and product mix;
Deepening client loyalty;
Unique Back-office team;
Using integrated marketing tools;
Reducing fixed expenses, especially administrative, marketing and logistics;
Offer the possibility of a quicker and cheaper delivery when using the store as the e-commerce logistic point, offering the Pickup at Store and Ship From Store;
Offer to the marketplace’s sellers the tools and services that Magalu has for its 1P (Magalu as a Service).

We offer a differentiated retail experience thanks to our sales platform, which is distributed across the following channels:

Conventional Stores

Over the course of our trajectory, we have accumulated a portfolio of commercial sales points that are strategically located and of great visibility to our customer base.

The Conventional Stores model consists in street or shopping units, with an average sales area of 700 square meters, physical showcase and own stock.

Virtual Stores

Created in 1992, during a challenging economic environment, the Virtual Stores represented an innovative response toward our expansion. The difference here is that we operate with smaller units without physical stocks except for mobile phones. The product mix is the same as a conventional store, however, goods are showcased by salespeople using multimedia.

Magazine Luiza was the pioneer in introducing this sales model during a period when companies did not work with the concept of electronic commerce in Brazil. We were able to expand our physical presence in the country and cater for repressed demand within a population that depended on large centres for their purchases.

Currently, the company has virtual stores in 4 States that operate at a much lower cost than the conventional ones, boosting return on investment. These stores have an average sales area of 150 square meters and are located in smaller cities.

E-commerce

The e-commerce division is one of fastest growing in Brazil. We offer clients highly relevant content, differentiated services and exclusive offers.

Unlike our competitors, our e-commerce is fully integrated within Magazine Luiza, including being under a single brand, helping us save marketing, logistics and IT costs.

The operation delivers in all cities in Brazil.

In addition to the wide assortment, one of our advantages is "Lu", the virtual influencer of Magalu, interactive virtual saleswoman who comments on products and help consumers during the purchase process. .The Channel also has new partnerships (B2B) and marketplace, enabling the sale of third-party products such as class trips, grocery, books, food supplements, sporting goods, fashion, among others.

In 2017, the effort for excellence in Magazine Luiza's service was once again recognized by the site ‘Reclame aqui`: By the evaluation of the consumers, the portal awarded the company with the RA1000 seal for its excellent levels of service. This distinction raises the level of trust the brand, increases the visibility of the quality of services and influences the buying decision. Besides that we also won the Best Marketplace in Brazil, from Ebit.

Magalu is already present on the smartphones of a large percentage of the Brazilian population. Together, our applications reached the 47 million monthly active user mark in 1H23.

Ecosystem

Netshoes is Brazil’s absolute leader in sports items e-commerce; it is one of Latin America’s main sports lifestyle websites and one of the most desired brands of Brazilian e-commerce. Founded in 2000 and acquired by Magalu in 2019, Netshoes adds two categories of great potential in Magalu’s ecosystem: sports items and fashion.
Netshoes is guided by innovation and connectivity, this is why it is a benchmark of services, delivery, and quality. With the mission of inspiring and transforming people’s lives with sports and leisure, Netshoes has over 16 million fans on social media, it has been a benchmark of online retail for the past 20 years.
Netshoes contribute with specific know-how of their categories and receive from ecosystem economies of scale in logistics, and back office. It also operates various other e-commerce brands, while offering sports footwear, accessories sports, and electronics at www.netshoes.com.br
This fashion and beauty website was founded in 2014 which offers the best fashion brands, style, makeup, footwear, garment, and accessories, from the outlet to the boutique area. Services are agile, reliable, with the power of innovation and quality of Magalu. To aspire and help people to make that little difference in their daily lives, Zattini connects people to a life with greater style and simplicity, a global benchmark in the online shopping experience. www.zattini.com.br 
Shoestock is one of Brazil’s most desired footwear and accessories brands. Design connection and a desire for optimum services are the principles guiding this brand’s history and its passion for shoes. Shoestock has 30-year experience with women's and men's footwear, besides bags and accessories, such as belts and purses. Lines of product combine from each season’s basic classics to the most promising novelties. Aiming at enchanting each launch, Shoestock invests in high-quality raw materials and its own development of collections along with suppliers who ensure production excellence. As part of a renewal process, Shoestock joined Netshoes in 2017 and entered a new phase in e-commerce and brick-and-mortar stores. www.shoestock.com.br
AiQFome is one of the largest food delivery platforms in Brazil, more than 8 million Brazilians having already placed at least one food order on the platform. AiQFome is a food delivery app which targets small and medium-sized cities located outside the main urban population centers. The Company’s highly scalable licensing model, in which local entrepreneurs license AiQFome’s brand and technology, has enabled the Company to rapidly build a network of hundreds of hyperlocal licensees, yielding high service levels for customers and restaurants. The Company’s intuitive application and capital efficient licensing model have enabled AiQFome to gain millions of users with strong potential for future growth. Active customers placed an average of more than 3 orders per month and users rate the AiQFome app as one of the best food delivery apps in Brazil. The platform has grown exponentially, with positive results and cash generation, making Magalu able to reinforce the expansion of services offered in its SuperApp, and also increasing purchase frequency within its ecosystem. https://aiqfome.com/ 
Época is Brazil’s most complete care and aesthetics e-commerce founded 26 years ago in the city of Rio de Janeiro. In 2013, Época composed Magalu’s ecosystem. At Época you can find the most awaited cosmetics and perfumery launches and most commented beauty trends. Browsing on the website, you can also find a broad line of treatment and dermo-cosmetics for skin, body, and face care, besides various sun protection brands and dermo-cosmetics in general. https://www.epocacosmeticos.com.br/ 
Estante Virtual is one of the largest online book marketplaces in Brazil and has more than 6,000 sellers and an assortment of 20 million books. Founded in 2005, Estante Virtual started as a platform for the sale of used books and in recent years, it has also expanded into the category of new books, which currently represent about 40% of all books sold. Estante Virtual reinforces the Magalu’s existing book category, launched in 2019. https://www.estantevirtual.com.br/ 
Luizacred is one of the largest financial Brazil and operates in-store at Magazine Luiza. The result of a joint venture (50/50) with Itaú Unibanco, since 2001 is an important tool in the customer base loyalty process, the sales performance and the Company's profitability. In June 2023, Luizacred had a total base of 6.9 million cards issued. Luizacred’s credit portfolio, including credit cards, direct consumer credit and personal loans, totaled R$20.0 billion in 2Q23. Magazine Luiza’s main role is employee management and customer service, while Itaú Unibanco is responsible for funding of Luizacred, drafting the credit and collections policies and back office activities, such as accounting and treasury. The financing company offers products such as Co-Branded Credit Cards, named Cartão Luiza and Cartão Magalu, Direct Credit to the Consumer (DCC), personal loans, consigned credit, among other services.
Founded in 1992, Consórcio Luiza was created to provide to our clients the chance to make their dreams come true and to give them the opportunity of a better life. The company works via a credit system, allowing consumers to buy products within groups. The business represents a form of savings, by means of self-financing, for the purchase of goods and hiring of services. Over the course of the years, the operation has gained other dimensions and, currently, covers segments such as vehicles, services and real-estate.
The Consorcio Luiza is positioned as one of the largest and best consortium managers in the country, has delivered more than 300,000 assets in its 25 years of operations and in 2017 had more than 66,000 active clients. Headquartered in Franca, interior of São Paulo, Consórcio Luiza provides customers access to its so-called “letters of credit” at all of our stores. The unit operates with its own staff and 170 authorized commercial representatives, besides the site www.consorcioluiza.com.br, which also offers quotas.
Magalu Pagamentos is Magalu’s sub-acquiring platform, rolled out at the end of 2019. With Magalu Pagamentos, the seller can anticipate receivables with very competitive rates, make reconciliations and manage his amounts receivable. With Magalu Pagamentos, we managed to monetize the marketplace’s accelerated growth, also monitor its chain, controlling the flow of our sellers’ payments, and offering funds at competitive rates.
MagaluPay is Magalu’s ecosystem digital account. This is the new means of payment of Magalu, fully integrated to the super app. Deposits can be made in the MagaluPay account in over 1,000 Magalu’s stores, shop at stores, or app using the account balance. It is also possible to transfer cash for friends who have the app, even pay monthly water, light, gas, and telephone bills. With MagaluPay, it is very easy to acquire a product using the QR Code, also this purchase includes cashback. This is an optimum service for customer loyalty, also promoting recurring shopping.
In 2020, our digital account gained more prominence with the Hub Fintech acquisition, a payment institution regulated by the Brazilian Central Bank and fully integrated with the Brazilian Payment System (SPB) and the recently launched PIX instant payment system. Important solutions developed by Hub include: (i) the complete banking structure for offering financial products and services through a digital account; (ii) a direct connection with relevant market participants, including lottery agencies and ATMs; (iii) a robust API platform capable of processing and reconciling millions of transactions; (iv) a comprehensive system for issuing and processing prepaid cards of the main brands, and (v) a modern card personalization center with a production capacity of up to 30 million cards per year. https://hubfintech.com.br/
ComSchool is one of the leading providers of e-commerce and digital economy-related courses in Brazil. ComSchool offers more than 200 different courses on subjects such as Digital Marketing, E-commerce, Social Networks and Behavior in the Digital Age. Since its founding, in 2008, ComSchool has trained more than 85,000 students. ComSchool was created to prepare people for the digital economy, providing courses focused on today’s most in-demand skills. Magalu will be able to leverage ComSchool to educate people at scale, preparing hundreds of thousands of individuals and companies to partake in the digital universe either directly as members of the Magalu team or indirectly as sellers on our marketplace platform. Upon the consummation of the acquisition, ComSchool will begin offering Magalu marketplace sellers courses designed specifically for their needs, enabling them to sell more and guaranteeing a higher level of customer service. ComSchool will also help catalyze the digitalization of Brazil by making knowledge of e-commerce best practices more widespread, accelerating the digital transformation of analog businesses and onboarding new sellers to the Magalu marketplace. https://www.comschool.com.br/ 
Stoq is a technology startup based in São Carlos, São Paulo, which specializes in developing innovative solutions for small and medium-sized Brazilian retailers. Founded in 2015, Stoq develops cloud-based point of sale (POS) systems which create better customer service experiences for physical retailers and their employees, drastically reducing lines and eliminating friction from the purchasing process. Among Stoq’s principal products is: SmartPOS, which allows attendants to place orders and receive payment wherever the customer is located, using different payment options, such as cards, digital wallets and contactless systems; the Stoq Self-Checkout, a self-service totem, which gives customers the autonomy to place an order and pay without having to wait in line or go through an attendant; and the Stoq Point of Sales (POS) system, which, among other things, allows the management of food delivery orders directly at the checkout counter. All of these sales channels are integrated into a single system. Stoq's products become part of the Magalu-as-a-Service (MaaS) strategic pillar, complementing the Partner Magalu initiative and bringing digitalization to small and medium-sized retailers, including those who have more than one store. https://www.stoq.com.br/ 
Canaltech is one of the largest multimedia production platforms in Brazil. The company specializes in technology-focused content such as product reviews, podcasts and daily news utilizing various media formats including audio, video and text. Canaltech’s portal currently reaches 24 million unique visitors per month, accelerating the Magalu Ads’ growth. It has one of the largest audiences of Brazilian technology channels on YouTube, with 2.5 million subscribers and a total of 420 million views - an average of 8 million views per month. With a team of more than 60 employees, Canaltech covers technology news such as product launches, recent developments with companies in the sector, and new technologies as well as updates on other areas of interest such as science, space, geek culture and curiosities. https://canaltech.com.br/ 
Sellers’ products, inside and outside the platform can also be exhibited online. Through the Magalu Ads tool, the seller positions his items on the Magalu website at main social media and network’s communication vehicles. The Inloco Media platform also features an advanced geolocation algorithm which has multiple “online-to-offline” (O2O) applications, making MagaluAds able to have its own simple and intuitive advertising platform, enabling thousands of sellers and suppliers to invest in accelerating their sales. The service offered by MagaluAds will be an additional way to monetize Magalu's audience, already very strong with Canaltech and Steal The Look. MagaluAds is an integral part of the“Magalu-as-a-Service” strategic pillar and complements the other value-added services already offered to small and medium-sized retailers
Hubsales enables manufacturers with little or no familiarity with e-commerce to significantly scale their businesses by offering their products directly to consumers via marketplace platforms. This emerging segment is known as Factory to Consumer, or F2C. Hubsales assists the seller with everything from registering and uploading their catalog, to order management and marketing, ensuring the highest quality information and service levels. Leveraging Hubsales’ expertise enables manufacturers to quickly gain relevance and distinguish themselves on crowded marketplace platforms. In exchange for their services, Hubsales receives a commission, which is on top of the take-rate charged by the marketplace platforms. The Factory to Consumer model eliminates intermediaries, increasing manufacturers margins and reducing distribution costs. Today, Hubsales is one of the leading companies in the F2C segment, particularly with regards to the footwear and apparel industries in the Franca region of the State of Sao Paulo and through Hubsales, Magalu is able to onboard a wide array of manufacturers onto the marketplace platform at scale, contributing to the expansion of it’s assortment. https://hub.sale/ 
In 2018, Magalu acquired LogBee, a platform that manages in real-time light product express deliveries daily made by various sellers, entrepreneurs, and vehicle owners. With an easy and intuitive app, Logbee distributes orders and indicates the best route to be followed by sellers, maximizing the number of same-day deliveries. Logbee is mainly liable for the last-mile delivery and to ensure that product reaches customers as quickly as possible.In 2020, the logistics operation was reinforced with the GFL acquisition, a leading e-commerce logistics company which offers same day delivery; last mile delivery within 2 days; reverse logistics, and first mile pick-up (collection of products from sellers’ stores or warehouses) and SincLog acquisition, a transport management platform with solutions for logistics companies which enables the management of cargo; the emission of shipping documents; the control of freight tables and the compensation of drivers.
In 2020, the logistics operation was reinforced with the GFL acquisition, a leading e-commerce logistics company which offers same day delivery; last mile delivery within 2 days; reverse logistics, and first mile pick-up (collection of products from sellers’ stores or warehouses) and SincLog acquisition, a transport management platform with solutions for logistics companies which enables the management of cargo; the emission of shipping documents; the control of freight tables and the compensation of drivers.

            
Magalu contributed with its business model to digitize entrepreneurs throughout Brazil, the so-called Magalu Partners. The goal was to bring the company’s digital ecosystem to as many micro and small analog businesses as possible. By closing their doors due to the pandemic, many small businesses lost out on income and customers. On the digital platform, these companies could start offering their products to nearly 37 million clients all over the country. For individuals who were quarantined at home, the platform allowed for direct sales. 
Hub Fintech, which began operations in 2012, is a payment institution regulated by the Brazilian Central Bank and fully integrated with the Brazilian Payment System (SPB) and the recently launched PIX instant payment system through its subsidiary, Hub Payments S.A.. In addition to offering a digital account and prepaid card directly to its customers, Hub is one of the largest Banking as a Service (BaaS) platforms in Brazil and a leader in prepaid card processing, serving customers in various segments including the retail, mobility, financial institution and fintech sectors.
VipCommerce is a platform which provides white-label e-commerce solutions for supermarkets, wholesale clubs and other retailers. Vip’s turnkey solution enables clients to rapidly create websites and mobile apps. This enables them to reach their customers online, while maintaining control of their brands and relationships with consumers. Vip’s software manages the complete order cycle--from initial order to last-mile delivery--via a suite of robust APIs which connect directly to the principal ERP systems used by Brazilian supermarkets. This enables the control of inventory and prices in real time. https://site.vipcommerce.com.br/ 
Founded in 2012, Steal the Look is one of the leading fashion and beauty content production companies in Brazil. STL’s multidisciplinary in-house team produces fresh fashion, beauty, home and culture content daily.
With Steal The Look, Magalu Ads is able to offer specialized content in the fashion, beauty and home categories, educating consumers and helping them with their purchase decisions, expanding the overall relevance of these categories (including its own brand as well as the Zattini and Época Cosméticos brands) within its first-party and third-party (marketplace) e-commerce businesses. https://stealthelook.com.br/

            
GrandChef designs software solutions for restaurants and bars. Through mobile and desktop applications, GrandChef enables the complete management of restaurant operations, from the control of online and physical orders to delivery platform integration, inventory management and financial controls.
Founded in 2017, SmartHint develops technology solutions designed to improve the online shopping experience. These solutions help customers find what they need, significantly increasing sales conversion.
SmartHint’s principal solutions include (i) intelligent search algorithms, which correct for common misspellings; allow for search by product color (using image reading), and enable voice search; (ii) recommendation algorithms, which generate user-specific suggestions based on consumers’ profiles, and (iii) retention tools, that trigger the desire to buy, increasing conversion rates and reducing cart abandonment.
Founded in 2002, Jovem Nerd produces original entertainment content, with a special focus on nerd culture. Jovem Nerd’s programs cover subjects such as movies, television series, games, history and science and are very popular. With the launch of NerdCast in 2006, Jovem Nerd was one of the earliest pioneers of the podcast format in Brazil. https://jovemnerd.com.br/
Juni is one of the leading conversion rate optimization (CRO) startups in Brazil. Juni’s proprietary methodologies enable the mapping and analysis of consumer behavior throughout the online experience--from browsing to checkout--then suggest new ways of optimizing the process, permitting companies to radically improve their sales conversion.
Founded in 2003, KaBuM! was one of the pioneers of e-commerce in Brazil and is a reference in computers, games and accessories, offering its more than 2.3 million customers the latest new releases from around the world.
With over 20,000 different items in stock, KaBuM! has a complete assortment of computers, hardware (video cards, memory, processors, sound cards, monitors), peripherals (keyboards, mouses, cameras, cables, adapters), products for the gamer universe (video games, chairs, tables, consoles) and for the smart home (cameras, lamps, virtual assistants, automation tools, and other accessories).
KaBuM! is also one of the pioneers of electronic sports in Brazil, having founded one of the largest League of Legends teams in the country. KaBuM! Sports is a four-time national champion and was the first Brazilian team to participate in the world championship. https://www.kabum.com.br/
Founded in 2015, Sode is an ultra-fast urban logistics startup, based at Recife’s technology hub, Porto Digital. Sode has proprietary technology which enables the management, routing and tracking of ultra-fast deliveries made by independent motorcycle couriers who use their own vehicles. Sode’s algorithm allows orders to be allocated to the closest driver, ensuring the fastest delivery for the customer, as well as the best experience for retailers and couriers.

Netshoes is Brazil’s absolute leader in sports items e-commerce; it is one of Latin America’s main sports lifestyle websites and one of the most desired brands of Brazilian e-commerce. Founded in 2000 and acquired by Magalu in 2019, Netshoes adds two categories of great potential in Magalu’s ecosystem: sports items and fashion.

Netshoes is guided by innovation and connectivity, this is why it is a benchmark of services, delivery, and quality. With the mission of inspiring and transforming people’s lives with sports and leisure, Netshoes has over 15 million fans on social media, it has been a benchmark of online retail for the past 20 years.

Netshoes contribute with specific know-how of their categories and receive from ecosystem economies of scale in logistics, and back office. It also operates various other e-commerce brands, while offering sports footwear, accessories sports, and electronics at www.netshoes.com.br

This fashion and beauty website was founded in 2014 which offers the best fashion brands, style, makeup, footwear, garment, and accessories, from the outlet to the boutique area. Services are agile, reliable, with the power of innovation and quality of Magalu. To aspire and help people to make that little difference in their daily lives, Zattini connects people to a life with greater style and simplicity, a global benchmark in the online shopping experience. www.zattini.com.br

Shoestock is one of Brazil’s most desired footwear and accessories brands. Design connection and a desire for optimum services are the principles guiding this brand’s history and its passion for shoes. Shoestock has 30-year experience with women's and men's footwear, besides bags and accessories, such as belts and purses. Lines of product combine from each season’s basic classics to the most promising novelties. Aiming at enchanting each launch, Shoestock invests in high-quality raw materials and its own development of collections along with suppliers who ensure production excellence. As part of a renewal process, Shoestock joined Netshoes in 2017 and entered a new phase in e-commerce and brick-and-mortar stores. www.shoestock.com.br

AiQFome is one of the largest food delivery platforms in Brazil, present in more than 815 municipalities across 21 states. AiQFome is a food delivery app which targets small and medium-sized cities located outside the main urban population centers. The Company’s highly scalable licensing model, in which local entrepreneurs license AiQFome’s brand and technology, has enabled the Company to rapidly build a network of hundreds of hyperlocal licensees, yielding high service levels for customers and restaurants. The Company’s intuitive application and capital efficient licensing model have enabled AiQFome to gain millions of users with strong potential for future growth. Active customers placed an average of more than 3 orders per month and users rate the AiQFome app as one of the best food delivery apps in Brazil. The platform has grown exponentially, with positive results and cash generation, making Magalu able to reinforce the expansion of services offered in its SuperApp, and also increasing purchase frequency within its ecosystem. https://aiqfome.com/

Época is Brazil’s most complete care and aesthetics e-commerce founded 26 years ago in the city of Rio de Janeiro. In 2013, Época composed Magalu’s ecosystem. At Época you can find the most awaited cosmetics and perfumery launches and most commented beauty trends. Browsing on the website, you can also find a broad line of treatment and dermo-cosmetics for skin, body, and face care, besides various sun protection brands and dermo-cosmetics in general. https://www.epocacosmeticos.com.br/

Estante Virtual is one of the largest online book marketplaces in Brazil and has more than 6,000 sellers and an assortment of 20 million books. Founded in 2005, Estante Virtual started as a platform for the sale of used books and in recent years, it has also expanded into the category of new books, which currently represent about ? of all books sold. Estante Virtual reinforces the Magalu’s existing book category, launched in 2019. https://www.estantevirtual.com.br/

Luizacred is one of the largest financial Brazil and operates in-store at Magazine Luiza. The result of a joint venture (50/50) with Itaú Unibanco, since 2001 is an important tool in the customer base loyalty process, the sales performance and the Company's profitability. In June 2023 Luizacred had a total base of 6.9 million cards issued. Luizacred’s credit portfolio, including credit cards, direct consumer credit and personal loans, totaled R$20.0 billion in 2Q23. Magazine Luiza’s main role is employee management and customer service, while Itaú Unibanco is responsible for funding of Luizacred, drafting the credit and collections policies and back office activities, such as accounting and treasury. The financing company offers products such as Co-Branded Credit Cards, named Cartão Luiza, Direct Credit to the Consumer (DCC), personal loans, consigned credit, among other services.

Founded in 1992, Consórcio Luiza was created to provide to our clients the chance to make their dreams come true and to give them the opportunity of a better life. The company works via a credit system, allowing consumers to buy products within groups. The business represents a form of savings, by means of self-financing, for the purchase of goods and hiring of services. Over the course of the years, the operation has gained other dimensions and, currently, covers segments such as vehicles, services and real-estate.

The Consorcio Luiza is positioned as one of the largest and best consortium managers in the country, has delivered more than 300,000 assets in its 25 years of operations and in 2017 had more than 66,000 active clients. Headquartered in Franca, interior of São Paulo, Consórcio Luiza provides customers access to its so-called “letters of credit” at all of our stores. The unit operates with its own staff and 170 authorized commercial representatives, besides the site www.consorcioluiza.com.br, which also offers quotas.

Magalu Pagamentos is Magalu’s sub-acquiring platform, rolled out at the end of 2019. With Magalu Pagamentos, the seller can anticipate receivables with very competitive rates, make reconciliations and manage his amounts receivable. With Magalu Pagamentos, we managed to monetize the marketplace’s accelerated growth, also monitor its chain, controlling the flow of our sellers’ payments, and offering funds at competitive rates.

MagaluPay is Magalu’s ecosystem digital account. This is the new means of payment of Magalu, fully integrated to the super app. Deposits can be made in the MagaluPay account in over 1,000 Magalu’s stores, shop at stores, or app using the account balance. It is also possible to transfer cash for friends who have the app, even pay monthly water, light, gas, and telephone bills. With MagaluPay, it is very easy to acquire a product using the QR Code, also this purchase includes cashback. This is an optimum service for customer loyalty, also promoting recurring shopping.

In 2020, our digital account gained more prominence with the Hub Fintech acquisition, a payment institution regulated by the Brazilian Central Bank and fully integrated with the Brazilian Payment System (SPB) and the recently launched PIX instant payment system. Important solutions developed by Hub include: (i) the complete banking structure for offering financial products and services through a digital account; (ii) a direct connection with relevant market participants, including lottery agencies and ATMs; (iii) a robust API platform capable of processing and reconciling millions of transactions; (iv) a comprehensive system for issuing and processing prepaid cards of the main brands, and (v) a modern card personalization center with a production capacity of up to 30 million cards per year. https://hubfintech.com.br/

ComSchool is one of the leading providers of e-commerce and digital economy-related courses in Brazil. ComSchool offers more than 200 different courses on subjects such as Digital Marketing, E-commerce, Social Networks and Behavior in the Digital Age. Since its founding, in 2008, ComSchool has trained more than 85,000 students. ComSchool was created to prepare people for the digital economy, providing courses focused on today’s most in-demand skills. Magalu will be able to leverage ComSchool to educate people at scale, preparing hundreds of thousands of individuals and companies to partake in the digital universe either directly as members of the Magalu team or indirectly as sellers on our marketplace platform. Upon the consummation of the acquisition, ComSchool will begin offering Magalu marketplace sellers courses designed specifically for their needs, enabling them to sell more and guaranteeing a higher level of customer service. ComSchool will also help catalyze the digitalization of Brazil by making knowledge of e-commerce best practices more widespread, accelerating the digital transformation of analog businesses and onboarding new sellers to the Magalu marketplace. https://www.comschool.com.br/

Stoq is a technology startup based in São Carlos, São Paulo, which specializes in developing innovative solutions for small and medium-sized Brazilian retailers. Founded in 2015, Stoq develops cloud-based point of sale (POS) systems which create better customer service experiences for physical retailers and their employees, drastically reducing lines and eliminating friction from the purchasing process. Among Stoq’s principal products is: SmartPOS, which allows attendants to place orders and receive payment wherever the customer is located, using different payment options, such as cards, digital wallets and contactless systems; the Stoq Self-Checkout, a self-service totem, which gives customers the autonomy to place an order and pay without having to wait in line or go through an attendant; and the Stoq Point of Sales (POS) system, which, among other things, allows the management of food delivery orders directly at the checkout counter. All of these sales channels are integrated into a single system. Stoq's products become part of the Magalu-as-a-Service (MaaS) strategic pillar, complementing the Partner Magalu initiative and bringing digitalization to small and medium-sized retailers, including those who have more than one store. https://www.stoq.com.br/

Canaltech is one of the largest multimedia production platforms in Brazil. The company specializes in technology-focused content such as product reviews, podcasts and daily news utilizing various media formats including audio, video and text. Canaltech’s portal currently reaches 24 million unique visitors per month, accelerating the Magalu Ads’ growth. It has one of the largest audiences of Brazilian technology channels on YouTube, with 2.5 million subscribers and a total of 420 million views - an average of 8 million views per month. With a team of more than 60 employees, Canaltech covers technology news such as product launches, recent developments with companies in the sector, and new technologies as well as updates on other areas of interest such as science, space, geek culture and curiosities. https://canaltech.com.br/

Sellers’ products, inside and outside the platform can also be exhibited online. Through the Magalu Ads tool, the seller positions his items on the Magalu website at main social media and network’s communication vehicles. The Inloco Media platform also features an advanced geolocation algorithm which has multiple “online-to-offline” (O2O) applications, making MagaluAds able to have its own simple and intuitive advertising platform, enabling thousands of sellers and suppliers to invest in accelerating their sales. The service offered by MagaluAds will be an additional way to monetize Magalu's audience, already very strong with Canaltech and Steal The Look. MagaluAds is an integral part of the“Magalu-as-a-Service” strategic pillar and complements the other value-added services already offered to small and medium-sized retailers

Hubsales enables manufacturers with little or no familiarity with e-commerce to significantly scale their businesses by offering their products directly to consumers via marketplace platforms. This emerging segment is known as Factory to Consumer, or F2C. Hubsales assists the seller with everything from registering and uploading their catalog, to order management and marketing, ensuring the highest quality information and service levels. Leveraging Hubsales’ expertise enables manufacturers to quickly gain relevance and distinguish themselves on crowded marketplace platforms. In exchange for their services, Hubsales receives a commission, which is on top of the take-rate charged by the marketplace platforms. The Factory to Consumer model eliminates intermediaries, increasing manufacturers margins and reducing distribution costs. Today, Hubsales is one of the leading companies in the F2C segment, particularly with regards to the footwear and apparel industries in the Franca region of the State of Sao Paulo and through Hubsales, Magalu is able to onboard a wide array of manufacturers onto the marketplace platform at scale, contributing to the expansion of it’s assortment. https://hub.sale/

In 2018, Magalu acquired LogBee, a platform that manages in real-time light product express deliveries daily made by various sellers, entrepreneurs, and vehicle owners. With an easy and intuitive app, Logbee distributes orders and indicates the best route to be followed by sellers, maximizing the number of same-day deliveries. Logbee is mainly liable for the last-mile delivery and to ensure that product reaches customers as quickly as possible.In 2020, the logistics operation was reinforced with the GFL acquisition, a leading e-commerce logistics company which offers same day delivery; last mile delivery within 2 days; reverse logistics, and first mile pick-up (collection of products from sellers’ stores or warehouses) and SincLog acquisition, a transport management platform with solutions for logistics companies which enables the management of cargo; the emission of shipping documents; the control of freight tables and the compensation of drivers.

Magalu contributed with its business model to digitize entrepreneurs throughout Brazil, the so-called Magalu Partners. The goal was to bring the company’s digital ecosystem to as many micro and small analog businesses as possible. By closing their doors due to the pandemic, many small businesses lost out on income and customers. On the digital platform, these companies could start offering their products to nearly 37 million clients all over the country. For individuals who were quarantined at home, the platform allowed for direct sales. In addition, 413,000 people joined the platform to earn extra income, since commission corresponded with up to 12% of product sales available on the Magalu website.

Hub Fintech, which began operations in 2012, is a payment institution regulated by the Brazilian Central Bank and fully integrated with the Brazilian Payment System (SPB) and the recently launched PIX instant payment system through its subsidiary, Hub Payments S.A.. In addition to offering a digital account and prepaid card directly to its customers, Hub is one of the largest Banking as a Service (BaaS) platforms in Brazil and a leader in prepaid card processing, serving customers in various segments including the retail, mobility, financial institution and fintech sectors.

VipCommerce is a platform which provides white-label e-commerce solutions for supermarkets, wholesale clubs and other retailers. Vip’s turnkey solution enables clients to rapidly create websites and mobile apps. This enables them to reach their customers online, while maintaining control of their brands and relationships with consumers. Vip’s software manages the complete order cycle--from initial order to last-mile delivery--via a suite of robust APIs which connect directly to the principal ERP systems used by Brazilian supermarkets. This enables the control of inventory and prices in real time. https://site.vipcommerce.com.br/

Founded in 2012, Steal the Look is one of the leading fashion and beauty content production companies in Brazil. STL’s multidisciplinary in-house team produces fresh fashion, beauty, home and culture content daily.

With Steal The Look, Magalu Ads is able to offer specialized content in the fashion, beauty and home categories, educating consumers and helping them with their purchase decisions, expanding the overall relevance of these categories (including its own brand as well as the Zattini and Época Cosméticos brands) within its first-party and third-party (marketplace) e-commerce businesses.

GrandChef designs software solutions for restaurants and bars. Through mobile and desktop applications, GrandChef enables the complete management of restaurant operations, from the control of online and physical orders to delivery platform integration, inventory management and financial controls.

Founded in 2017, SmartHint develops technology solutions designed to improve the online shopping experience. These solutions help customers find what they need, significantly increasing sales conversion. SmartHint’s principal solutions include (i) intelligent search algorithms, which correct for common misspellings; allow for search by product color (using image reading), and enable voice search; (ii) recommendation algorithms, which generate user-specific suggestions based on consumers’ profiles, and (iii) retention tools, that trigger the desire to buy, increasing conversion rates and reducing cart abandonment.

Founded in 2002, Jovem Nerd produces original entertainment content, with a special focus on nerd culture. Jovem Nerd’s programs cover subjects such as movies, television series, games, history and science and are very popular. With the launch of NerdCast in 2006, Jovem Nerd was one of the earliest pioneers of the podcast format in Brazil.

Founded in 2003, KaBuM! was one of the pioneers of e-commerce in Brazil and is a reference in computers, games and accessories, offering its more than 2 million customers the latest new releases from around the world.

With over 20,000 different items in stock, KaBuM! has a complete assortment of computers, hardware (video cards, memory, processors, sound cards, monitors), peripherals (keyboards, mouses, cameras, cables, adapters), products for the gamer universe (video games, chairs, tables, consoles) and for the smart home (cameras, lamps, virtual assistants, automation tools, and other accessories).

KaBuM! is also one of the pioneers of electronic sports in Brazil, having founded one of the largest League of Legends teams in the country. KaBuM! Sports is a four-time national champion and was the first Brazilian team to participate in the world championship.

Founded in 2015, Sode is an ultra-fast urban logistics startup, based at Recife’s technology hub, Porto Digital. Sode has proprietary technology which enables the management, routing and tracking of ultra-fast deliveries made by independent motorcycle couriers who use their own vehicles. Sode’s algorithm allows orders to be allocated to the closest driver, ensuring the fastest delivery for the customer, as well as the best experience for retailers and couriers.

Juni is one of the leading conversion rate optimization (CRO) startups in Brazil. Juni’s proprietary methodologies enable the mapping and analysis of consumer behavior throughout the online experience--from browsing to checkout--then suggest new ways of optimizing the process, permitting companies to radically improve their sales conversion.