Latin American e-commerce and classifieds site MercadoLibre (Nasdaq: Meli) plans to raise a combined $1.85 billion U.S. — $1 billion U.S. will come from a common stock offering, the company said this week. 

PayPal has committed to buying $750 million U.S. of MercadoLibre’s common stocks. In a separate agreement, Dragoneer Investment Group agreed to buy another $100 million U.S. of a series A perpetual convertible preferred stock.

MercadoLibre CEO Marcos Galperin said the two investments will help the company accelerate its growth. The company has posted several consecutive net losses in the past few quarters but net revenues have increased steadily.

“We look forward to accelerating our leadership in e-commerce and payments and fostering financial inclusion in Latin America as a result of our alliance with a global leader in the industry such as PayPal,” Galperin said.

MercadoLibre plans to use the money from the two investors to expand its e-commerce site, to strengthen its logistics infrastructure, and to invest in “solutions that further solidify the company’s position as a powerful provider of inclusive end-to-end financial technology and payments solutions.”

“Digital commerce in Latin America is experiencing tremendous growth and MercadoLibre is well-positioned for continued leadership,” PayPal CEO Dan Schulman added.

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