You’re reading The Brazilian Report’s weekly tech roundup, a digest of the most important news on technology and innovation in Brazil. This week’s topics: a new round of investments puts Nubank atop all other independent banks, Brazil’s regulatory agenda for 2021, and the rise of ‘live commerce’ in Brazil.
Nubank rise a good omen for Brazilian fintechs
Nubank has officially ascended to the top table of Brazil’s banking industry. After securing a new investment of USD 400 million in a Series G funding round, the company raised its market value to an eye-popping USD 25 billion. The company claims it now figures among the top five most valuable financial institutions in Latin America, just eight years after opening up for business.
- Experts warn, however, that Nubank must maintain focus on its core values and avoid the pitfalls to which traditional players have succumbed.
What now? Nubank said the new funds will finance the expansion of its Colombian and Mexican operations, where the bank has already launched its trademark purple credit card. It also announced reaching the mark of 34 million “unique” product customers — as the credit card is currently used by 20 million people and 30 million Brazilians have access to its digital account services. With the new additions, Nubank has become the largest independent bank in the world.
- “We want to accelerate our revolution in Brazil, bring more products and better products to all Brazilians and increase our expansion in Latin America”, said CEO and founder David Vélez.
- BTG Pactual believes the Series G round is another step toward preparing NuBank for a future IPO, as the company is clearly adding new products while improving its ecosystem and client monetization.
- Analysts say Mr. Vélez could soon step down from his role as CEO, as rumors say he is actively engaged in head-hunting for executives.
Auspicious news. As Brazil’s biggest fintech, Nubank often acts as a proxy for movements in the sector as a whole. This time is no different. According to Cássio Rosas, head of marketing of cryptocurrency platform WiBX, “large Series G rounds like this, that include the participation of long-term investors, show that there is indeed money available for the ecosystem, particularly for good ideas,” he told The Brazilian Report.
Growing pains. Nubank and other digital banks were born with the mission of providing better customer experience than traditional banks. But as operations grew bigger, complaints followed. Fellow digital bank Inter leads the country in complaints. Nubank, which prides...
Search
