Nubank obtains a $650 million line of credit for its expansion in Mexico and Colombia

Digital bank

Reinforcing its goal of promoting financial inclusion in Latin America, Nubank secured a $650 million line of credit.

Image source: David Vélez/Nubank.

One of Latin America’s largest digital financial services platforms, Nubank, has just secured a $650 million line of credit.

The funds come from a three-year local currency line of credit funded by Morgan Stanley, Citi, Goldman Sachs and HSBC, which subscribed to Nubank’s IPO last December, where the fintech raised around $2, $8 billion.

By focusing on technology development and product innovation, growing its customer base and attracting “the best talent in the region”, the company will use the money to accelerate its growth in Mexico and Colombia.

“We are redoubling our commitment in Mexico and Colombia to continue growing and generating positive local impact through the financial inclusion of millions of Latin Americans,” said Nubank Founder and CEO David Vélez.

Founded in Brazil in 2013, Nubank began expanding internationally with its launch in Mexico in 2019 before branching out to Colombia in 2020.

It says it now has around 54 million customers regionally and is the largest credit card issuer in Mexico with 1.4 million customers.

Colombia also saw its customer base almost triple in the last quarter of the year to 114,000.

“We have grown at an intense pace and this regional credit facility allows us to continue to move faster in our goal of fighting bureaucracy to empower our customers,” said Nu Colombia General Manager Catalina Bretón.

One of the few companies to enter the Forbes 2022 Midas list as a newcomer this year, Nubank is now one of Latin America’s largest fintechs, valued at $42 billion.

Warren Buffet’s Berkshire Hathaway invested $500 million in fintech last June, just months before the company went public.

He doubled that investment just a few months ago, taking his stake in the company to $1 billion.

The company started by issuing credit cards with no annual fee and has since expanded to offer debit cards, bank accounts, loans and life insurance.

“Nu arrived in Mexico on a mission to fight complexity and bureaucracy to empower people to regain control of their finances, promote financial inclusion and human capital development in the country,” said said Nu Mexico general manager Emilio González.

“This funding confirms our long-term commitment to Mexico and will allow us to bring our products to several million more people.”

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