Nubank, the largest independent digital bank in the world, announced it has raised US$500 million from Berkshire Hathaway. This deal is an extension to the Series G funding round, carried out last January.
Nubank, which was recently recognized as one of the most influential companies in the world by TIME and one of the most disrupting ones by CNBC, has revolutionized the financial services industry in Latin America freeing millions of customers of the bureaucracy and abusive fees.
The new equity financing comes as a result of Nubank’s accelerated and sustainable growth. The company is currently the largest digital bank in the world by number of customers having surpassed the 40 million mark.
Nubank, which recently launched a new brand identity to celebrate its 8th year anniversary, has entered a new phase in the development of its business. It has grown its core product offering of credit card and savings account to a full digital banking platform with a vast portfolio of solutions that includes life insurance, personal loans, investing products, mobile payments and solutions for small businesses and entrepreneurs.
This growth is also reflected internally: since the beginning of the year Nubank has hired over 1,000 people and currently has a workforce from 37 different nationalities.
Nubank operates in Brazil, Mexico and Colombia, three of the largest countries in Latin America that represent 60% of the region’s population and GDP. In these geos, banking is one of the most profitable and concentrated industries, where a few players hold between 70-90% of the market and rely heavily on charging high fees to its customers while offering a terrible customer experience.
In this context, Nubank was founded with the mission to empower people to have control over their money through fully digital banking services, putting an end to abusive fees, and offering a human service to its customers. The company has been recognized by its excellence in customer experience and has been able to export it across geos in its internationalization process: today in Mexico, Nubank is one of the largest issuers of new credit cards and registers a has an NPS of 93.
"As I look back on the past eight years, everything that we have been able to accomplish as a company is just remarkable. When no one thought it was possible, we were convinced that there was room for disruption and innovation and, more importantly, that the customers just deserved better. But we are far from being done: it’s still Day One for us", explains founder and CEO David Vélez