UPDATE 1-Fintech Nubank Secures $650M Line of Credit for Expansion in Mexico and Colombia
(Adds details on Nubank stock performance)
By Cassandra Garrison
MEXICO CITY, April 11 (Reuters) – Latin America’s fintech star Nubank is fueling its expansion in Mexico and Colombia with the investment of a $650 million line of credit, the digital bank said on Monday.
The new funds are a three-year line of credit in Mexican and Colombian pesos, funded by Morgan Stanley, Citigroup Inc, Goldman Sachs and HSBC, institutions that were underwriters for Nubank’s initial public offering (IPO) in December 2021.
Backed by Warren Buffett’s Berkshire Hathaway, Nubank said the funding will go towards technology and product development, customer growth and hiring.
While the majority of Nubank’s products are developed and designed in-house, the company has recently been considering partnerships, Nubank chief executive David Velez said, citing its integrated marketplace in Brazil where customers can shop at retailers. , and its alliance insurance products. with supplier Chubb.
“We are constantly evaluating opportunities to expand our product offering,” Velez told Reuters.
Founded in 2013 to offer consumers a no-fee credit card, Nubank briefly became Latin America’s largest listed bank ahead of Brazil’s Itau Unibanco Holding. Shares of Nubank have since fallen and those of Itau have strengthened, returning Itau to the top spot as the region’s most valuable listed bank.
Nubank offers credit cards in 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 customers in Colombia.
“Our priority is to continue developing this product to expand our customer base and launch more features,” he added.
Nubank’s presence in Brazil, where it offers its customers services such as credit cards, savings accounts, investments, insurance and personal loans, gives an “interesting idea” of the direction the company will take. company in Mexico and Colombia in the next five to 10 years, Velez said. without giving more details.
Velez previously told Reuters that Nubank was preparing to launch checking accounts in Mexico this year, after receiving regulatory approval for its acquisition of local lender Akala.
(Reporting by Cassandra Garrison; Editing by Lisa Shumaker and Bernadette Baum)