Fintech Nubank nets $650 million credit score line for Mexico, Colombia growth

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MEXICO CITY : Brazil’s Nubank, Latin America’s most dear fintech, is fueling its growth in Mexico and Colombia with the funding of a $650 million line of credit score, the digital financial institution stated Monday.

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The brand new funds are a three-year credit score line in Mexican and Colombian pesos, financed by Morgan Stanley, Citigroup Inc, Goldman Sachs, and HSBC, establishments that had been underwriters of Nubank’s preliminary public providing (IPO) in December 2021.

Backed by Warren Buffett’s Berkshire Hathaway, Nubank stated the funding will go in direction of expertise and product improvement, customer-base development and hiring.

Whereas nearly all of Nubank’s merchandise are developed and designed in-house, the corporate has lately regarded into partnerships, stated Nubank Chief Govt David Velez, citing its in-app market in Brazil the place prospects can store at retailers, and its insurance coverage merchandise in alliance with supplier Chubb.

“We’re consistently evaluating prospects to broaden our product providing,” Velez informed Reuters.

Based in 2013 to supply customers a no-fee bank card, Nubank grew to become Latin America’s most dear listed financial institution, at $41.5 billion, forward of Brazil’s Itau Unibanco Holding.

Nubank gives bank cards in each Mexico and Colombia and operates below the identify “Nu”. The digital financial institution closed the yr with greater than 1.4 million prospects in Mexico and 114,000 prospects in Colombia.

“Our precedence is to maintain creating this product to develop our buyer base and launch extra options,” he added.

Nubank’s presence in Brazil, the place it gives purchasers providers together with bank cards, financial savings accounts, investments, insurance coverage and private loans, provides an “attention-grabbing concept” of the place the agency is headed in Mexico and Colombia within the subsequent 5 to 10 years, Velez stated with out providing extra particulars.

Velez beforehand informed Reuters that Nubank is getting ready to launch checking accounts in Mexico this yr, after it acquired regulatory approval for its acquisition of native lender Akala.

(Reporting by Cassandra Garrison; Enhancing by Lisa Shumaker)

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