Brazilian neobank Nubank has received $500 million in funding from US conglomerate Berkshire Hathaway.
Founded in May 2013, the São Paulo headquartered company has around 38 million customers, 35 million of which are in Brazil.
The Neobank’s 3700 employes are mostly spread across offices throughout Brazil, though it also has offices in Berlin, Mexico City and Buenos Aires, Argentina.
The investment, alongside an additional $250 million raised from investors including the Canada Pension Plan Investment Board, MSA Capital and Sunley House Capital, brings the bank’s total funding for 2021 to $1.15 billion – the largest round ever raised by a South American technology company.
Nubank said the capital will be used to expand internationally and to further move into the consumer investment sector, following its recent acquisition the Easynvest brokerage platform.
Berkshire Hathaway, headquartered in Omaha, Nebraska and controlled by famed billionaire investor Warren Buffet, owes large stakes in Kraft Heinz Company, American Express, The Coca-Cola Company, Bank of America, and Apple.
"Around 50 per cent of the population in Latin America still does not have a bank account,” said David Vélez, chief executive at Nubank. “Credit card penetration is, on average, 21 per cent, while in the United States this number is over 70 per cent.”
He added: “This new funding will help us to keep democratizing access to financial services across the region."
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