Nubank obtains 650 million dollars for its expansion in Mexico and Colombia

The Brazilian neobank Nubankthe most valuable fintech in Latin America, is promoting its expansion in Mexico and Colombia with the investment of a line of credit of 650 million dollars, the digital bank announced on Monday.

The new funds come from a three-year line of credit in Mexican and Colombian pesos, financed by Morgan Stanley, Citi Group, Goldman Sachs Y HSBCinstitutions that were subscribers of the initial public offering (IPO) of Nubank in December 2021.

Backed by Berkshire Hathawayfrom Warren BuffetNubank said the funding will go towards technology and product development, customer base growth and recruitment.

While most of Nubank’s products are developed and designed in-house, the company recently sought partnerships, Nubank Chief Executive David Velez said, citing its in-app marketplace in Brazil, where customers can shop at retail stores, and its insurance products in alliance with the provider Chub.

We are constantly evaluating the possibilities of expanding our product offering,” Velez told Reuters.

Founded in 2013 to offer consumers a credit card with no fees, Nubank became the most valuable publicly traded bank in Latin America, with $41.5 billion, ahead of Brazil. Itau Unibanco.

Nubank offers credit cards in both Mexico and Colombia and operates under the name “Nu”. the digital bank closed the year with more than 1.4 million customers in Mexico and 114,000 clients in Colombia.

“Our priority is to continue developing this product to expand our customer base and launch more features,” Vélez added.

Nubank’s presence in Brazil, where it offers its clients services that include credit cards, savings accounts, investments, insurance and personal loans, gives an “interesting idea” of where the firm is headed in Mexico and Colombia in the coming years. five to 10 years, Vélez said.

The executive previously told Reuters that Nubank is preparing to launch checking accounts in Mexico this year, after receiving regulatory approval for the acquisition of local lender Akala.

Leave a Comment