Berkshire Hathaway invests $500m in Nubank
Berkshire Hathaway is pumping $500 million into Brazilian digital banking behemoth Nubank as part of a $750 million Series G funding round extension at a $30 billion valuation.
Since a $400 million Series F in July 2019, the company’s customer base has grown from 12 million to 40 million people, with more than 45,000 signups a day.
The firm has developed from a core credit card product offering to a complete digital banking platform with a vast portfolio that includes personal lending; life insurance, which in three months reached 100,000 contracts; products for micro entrepreneurs; and instant payment services — Nubank accounts for about a quarter of all Pix transfers in the country.
While Brazil dominates the customer base, Nubank has won 1.5 million customers in Mexico in just over a year and has 300,000 Colombians signed up to a waiting list.
The new funding will be used to continue this international expansion and to make a concerted push into the investment sector through the recently acquired Easynvest platform.
The investment will also help Nubank attract global talent, such as the recent hires of Matt Swann, formerly of Amazon and Booking, as CTO and Arturo Nuñez, formerly of Apple and Nike, as chief marketing officer.
David Vélez, CEO, Nubank, says: “Around 50% of the population in Latin America still does not have a bank account. Credit card penetration is, on average, 21%, while in the United States this number is over 70%. This new funding will help us to keep democratizing access to financial services across the region.”