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Another day, another mega round for a startup of fintech. And this one is mega-mega.
Brazilian company Nubank, which offers a range of banking and financial services to Brazilian consumers, today announced it has raised $ 400 million in Series F venture capital under TCV's Woody Marshall. The growth fund is best known for investing in Netflix, but has also put fintech at the top of the list with investments of more than $ 1.5 billion in this area. According to Nubank, the company has now raised $ 820 million over seven rounds of venture capital.
Katie Roof and Peter Rudegeair Wall Street Journal reported this morning that the company had earned a valuation over $ 10 billion, which could make it one of the few lists of startup decacorns. This represents an increase over the $ 4 billion valuation reported in October 2018.
The growth of the company is partly responsible for this grand tour. Nubank In a statement, it has now reached 12 million customers for its various products, making it the sixth largest financial institution in terms of number of customers in its domestic market. Brazil has about 210 million inhabitants, which indicates that there is still a lot of potential for local growth even before the company begins to consider its options for international expansion. Nubank announced a few weeks ago that she was going to start expanding her offerings in Mexico and Argentina.
Over the past year, the company has expanded its product offering to include personal loan and cash withdrawal options in its digital savings accounts.
As I wrote earlier this week, part of the reason for these Fintech mega-tours is that the cost of acquiring a financial customer is critical to the success of these startups. Once a startup has a customer for a financial product – for example, a savings account – it can then entice its customers to buy other products at a very low marketing cost. This also seems to be Nubank's strategy, with its expanding product line.
As my colleague Jon Shieber spoke about last month, the critical links between Stanford, Silicon Valley and Latin America have spurred a wave of venture capital investment in the region, with the continent facing a same digital transformation as seen elsewhere in the world. Dr. Consulta cited more than nine figures to address the serious health care needs of Brazilian consumers. In addition, the SoftBank Vision Fund, which would have been invested earlier in Nubank earlier this year, has committed to invest $ 5 billion in the region and recently invested $ 231 million in the Fintech Creditas start-up. .
In a TCV email, Woody Marshall said: "Leveraging a unique technology, David Vélez and his team are constantly pushing the boundaries in providing the best financial services, based on a culture of technology and innovation. Nubank has all the basics of what TCV is looking for in franchise investment par excellence. "
NuBank was founded in 2013 by co-founders Adam Edward Wible, Cristina Junqueira and David Velez. In addition to TCV, existing sponsors Tencent, DST Global, Sequoia Capital, Dragoneer, Ribbit Capital and Thrive Capital also participated in the tour.
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