NuBank Expands Operations to Mexico, Colombia
Brazil’s Nubank obtained a US$650 million credit line to expand its international operations in the Mexican and Colombian markets. The funds will come from a three-year local-currency line of credit that will be primarily funded by Morgan Stanley, Citi, Goldman Sachs and HSBC, which were underwriters for Nubank's Dec. 2021 IPO, when the company was able to raise approximately $2.8 billion.
The bank, one of the largest digital financial services platforms in the world, is now seeking to reinforce its current vision and expand throughout the region. “The rapid growth we have seen in Mexico and Colombia has exceeded our most ambitious expectations. This funding reflects the confidence that key investors and shareholders have in our business model and growth potential. We are redoubling our commitment in Mexico and Colombia to continue growing and generating a positive local impact through the financial inclusion of millions of Latin Americans,” said David Vélez, CEO and Founder, Nubank, via a press release.
The company will now focus on technology development, product innovation, growing its customer base and attracting the best talent in the region. “We have grown at an intense pace and this regional credit facility allows us to continue advancing more quickly in our objective of fighting bureaucracy to empower our customers,” said Catalina Bretón, General Manager, Nu Colombia.
NuBank announced that its expansion seeks to tackle the complex bureaucracy of the Mexican banking industry. The company aims to develop new products in Mexico to empower people’s finances. The development of fintech in Mexico has risen rapidly since the COVID-19 pandemic changed banking operations around the world to function properly according to health protocols.
NuBank will now seek to target millions of new customers with this ambitious project, while competing head to head with some of the industry’s most influential and dominant companies in the region.