Brazilian Digital Bank Nubank gets $500 million in funding from Berkshire Hathaway
CBW -External Analyst
Jun, 09 2021
Brazil’s digital bank operator Nu Pagamentos SA stated that Berkshire Hathaway Inc. decided to buy $500 million of its shares. The investment is attended by another, $250 million deal that takes account of several domestic and foreign investors, Nu stated. It came into existence on 08-June-2021.
The new investments provide Nubank with a $30 billion valuation at the time of its earlier fundraising round. As per the source, this would make the upstart bank value just to some extent less than Banco Santander Brasil SA. This gives the rank to Brazil’s No. 3 bank, which has more than 2,000 branches.
Nubank, which has 40 million clients, held in a declaration it plans to use the takings to fund its international growth to Mexico and Colombia. It launches new products and services and hires more employees. The transaction also cryptos Nubank into the upper echelons of fintech universal, on a par with brokerage startups with Robinhood Markets Inc and China’s Lufax but still far behind Ant Group.
The appearance of such high-profile investors, who frequently invest in publicly traded companies, suggests how close Nubank is to a listing. Formerly in April, Reuters stated that Nubank had initiated preparations for a U.S. stock market listing which could come as initially as this year, as pers the sources familiar with the matter.
Berkshire Hathaway, controlled by renowned investor and bitcoin critic Warren Buffett. He has made a $500 million investment in Brazilian digital bank Nubank. In a declaration Tuesday, Nubank said the Berkshire Hathaway investment is an allowance of the G Series funding carried out in January. Series G is the eighth fundraising event for a startup.
Nubank stated in terms of its number of customers it has freshly reached 40 million and, in the first five months of the year. It has grown at a pace of more than 45,000 new customers every day. The digital bank has been acknowledged as an influential company in Latin America by TIME and one of the most pioneering by CNBC.
CBW - External Analyst