By Oliver Smith on Friday 29 January 2021
At 34m customers, Nubank considers itself the world’s largest digital bank.
Brazilian digital bank Nubank broke fintech records last night after announcing a $400m funding round which came at a $25bn valuation on the company.
By comparison, Revolut last year raised $580m in Europe at a $5.5bn valuation, demonstrating the vast scale at which investors view Nubank’s opportunity.
The equity funding came from GIC, Whale Rock and Invesco, and existing Nubank investors Sequoia, Tencent, Dragoneer and Ribbit.
Nubank now considers itself the largest digital bank in the world, indeed its customer base has almost tripled since its last funding round in 2019, from 12m to over 34m customers today.
Its new capital will drive growth in Colombia and Mexico, two new markets that Nubank recently launched in and that the bank says contain ⅔ of Latin America’s population and GDP.
“Nubank was born out of the conviction that people deserved better, more transparent and human financial services that would allow them to be in control of their money and their future,” said David Vélez, CEO and founder of Nubank.
“But this pain is not exclusive to Brazilians. It is a pain shared among all Latin Americans. With this new round of funding, we will be able to grow and scale our recently launched operations in Mexico and Colombia, and free more and more people from complexity".
Nubank’s offering currently includes a no-fee credit card used by 20m people, a digital savings account used by 30m people, and it recently entered the investments space through its acquisition of Easynvest.
“While our core is in financial services, we see no limits for the ways Nubank can fight complexity and have a transformative impact in people’s lives. It’s still day one for us, the opportunities ahead are endless,” added Vélez.