Nubank , founded in Brazil by Colombian David Vélez , has become one of the largest digital financial services companies in the world. To speed up its international expansion in Mexico and Colombia, where it operates under the Nu name, the company announced a $650 million line of credit .
The move is part of the company’s commitment and vision for the region, where it hopes to foster technological development and financial inclusion for a historically underserved population.
The resources come from a three-year local currency credit line financed by Morgan Stanley, Citi, Goldman Sachs and HSBC, institutions that were underwriters in Nubank’s Initial Public Offering (IPO) in December 2021, in the which the company raised approximately $2.8 billion, the company reported. The financing will be invested in key areas such as: technological development and product innovation, the growth of the client base and the attraction of the best talent in the region .
“The rapid growth we have seen in Mexico and Colombia has exceeded our most ambitious expectations. This financing is a reﬂection of the confidence of major investors and shareholders in our business model and growth potential,” said David Vélez, CEO and founder of Nubank, who added: “We redoubled our commitment in Mexico and Colombia to continue growing and generating impact positive local through the financial inclusion of millions of Latin Americans”.
Nu arrived in Mexico in 2019 and landed in Colombia in 2020. Today, the company has around 54 million customers regionally and is already the main credit card issuer in Mexico.
“At Nu Colombia we are reinventing the future of financial services for the country and working decisively to become leaders in the sector. We have grown at a great rate and this regional line of credit allows us to continue advancing more quickly with the aim of fighting bureaucracy to empower our clients” affirmed Catalina Bretón, general manager of Nu Colombia, who concluded: “This financing, which reaffirms the solidity of Nu and our confidence in the country, it will be aimed at the growth of the team and the development of technology that has already allowed us to free thousands of Colombians from complexity”.
Both markets are a key piece in Nubank’s expansion, which is why the firm decided to invest the money to consolidate in these countries.
(This text was originally published on Social Geek )