Nubank provides digital financial services in Colombia and is expanding its operations and customer access across the country. The company increased a loan facility to support broader access to its services and to drive operational growth. In just over two years of operating in Colombia, Nu has amassed more than 700,000 customers and issued over 300,000 cards in the past 10 months. It reports serving customers in more than 80% of Colombian municipalities, and nearly one in ten adults in the country applied to become a Nu customer. The financing boost is positioned to expand the reach and quality of financial services available to Colombians and to accelerate Nu’s local growth trajectory. The IFC described the increase as its first investment with a digital bank in the region, reflecting institutional confidence in Nu’s leadership in digital financial services. Nubank operates a large digital financial services platform focused on consumer banking products, initially centered on credit cards and expanding into deposits and other services. The company announced a $330M equity capitalization to finance portfolio expansion, increase penetration across market segments, and strengthen its Mexican operations. Nubank received regulator CNBV approval to expand beyond credit cards to include deposits and other financial services and will operate in Mexico as SOFIPO Nu Mexico Financiera. It plans a phased roll-out of a fully digital savings account, Cuenta Nu, and a debit card, both managed through the Nu app. Nu México has over 3 million customers, is the largest issuer of new credit cards in the country, and has a waitlist of thousands for Cuenta Nu after three years in-market. Management says the funding will unlock growth in deposits and other products such as personal loans and underlines Mexico as the company’s second-largest and strategic market in its internationalization roadmap. Nubank is a Brazilian digital bank founded in 2013 by David Vélez, Junqueira, and Edward Wible. Its core products include digital banking and credit cards; it serves about 54 million customers regionally and is the largest credit card issuer in Mexico. The company began international expansion in 2019 in Mexico and 2020 in Colombia, where it is building engineering, product, and data science teams. Operational metrics cited include 1.4 million Mexican customers and an NPS of 94 at the end of 2021, and 114,000 customers in Colombia after 11 months of card issuance. The newly announced funding will be used to expand its footprint in Mexico and Colombia, accelerate technology and product development, grow its customer base, and hire. Nubank was also named one of TIME's 100 most influential companies. Nubank started as a tech-first Brazilian fintech and has grown into a digital bank offering fee-free credit cards, digital bank accounts, debit cards, loans, insurance, Pix P2P payments, rewards and small-business accounts. The company serves largely unbanked or underserviced customers in Brazil and has expanded services into Colombia and Mexico. Nubank emphasizes low customer acquisition cost via word of mouth and reinvests in customer service; it recently hired senior executives to help scale operations. The business has grown rapidly — customers rose from about 34 million to 40 million in roughly six months — and continues hiring. Management says the new funds will be used to grow the business and hire more people, while it evaluates further market expansion. Nubank is a digital-first bank launched in 2013 that began as a credit card company and now provides a full range of banking products without physical branches. The company has grown to 34 million customers and was onboarding roughly 41,000 new customers per day by September of last year. Nubank emphasizes low customer acquisition cost (the company says it has $0 CAC) and invests in customer service and employee compensation to drive organic growth. The app-based product is location-agnostic, allowing the company to reach municipalities traditional banks do not, and it offers credit-building features such as low initial card limits that expand with on-time payments. Nubank has expanded beyond Brazil into Colombia and Mexico and plans to use new funding to flesh out operations in those markets while continuing to build product offerings in Brazil. According to the company, its Brazil operation has been cash-flow positive since 2018.

Total raised

$3.2B

Funding rounds

11

Latest round

Debt Financing

Latest activity

Sep 2023