Nubank Raises Colossal Funding for Fintech Startup Product

By Thomas Price Tuesday, February 2, 2021

The COVID-19 pandemic has further emphasized that the idea of traditional banks is extremely antiquated in modern times. Especially for countries that do not have an established traditional banking infrastructure, fintech companies and startups have served as a more modern and efficient alternative. Brazilian startup Nubank has been one of the largest names in fintech to offer this business alternative. As the startup continues to garner new business, the company’s funding has shot through the roof. With the user base growing by the day and the fintech startup dramatically expanding its scope, the neobank has placed itself at the top of the industry in Brazil. Furthermore, their recent Series G funding round and recent business valuation has the company looking forward to a bright future.

Nubank logo.

Nubank’s Services and Strong Growth

Nubank is a Brazilian fintech startup company based in São Paulo. Founded in 2013 as a credit card company, the startup has since evolved into a fully capable digital bank that offers nearly every financial service a traditional banking business would be able to provide its customers. These services include a completely digital account that can be accessed on their mobile app, a credit card, a points-based rewards program, loans, and a business account for users who plan on using Nubank for their own companies.

Since launching, the startup has seen incredible growth on nearly all fronts. In fact, the business now has more than 34 million users, a giant leap up from the 12 million that the company had in 2019. 70% of these users are under the age of 36, suggesting that the user base will only continue to grow with younger generations more easily embracing the neobank in opposition to traditional financial businesses.

The company has also seen business expand internationally. Nubank now has offices not only in São Paulo but also in Berlin, Mexico City, and Buenos Aires. These offices boast over 2,400 combined employees.

The bank’s sudden growth has resulted in a wide host of investors taking much interest in the company.

Nubank’s Recent Funding and Valuation

In Nubank’s Series G funding round, the startup raised an incredible $400 million. The funding round was led by Singapore’s GIC, Whale Rock, and Invesco, with participation from Tencent, Dragoneer, Ribbit Capital, and Sequoia. The recent funding and strong business growth from the startup has led to a public valuation of a whopping $25 billion. The valuation makes Nubank the fourth most valuable financial institution in all of Latin America.

When commenting on the current state of the business, Nubank’s co-founder and CEO David Velez said, “Nubank was born out of the conviction that people deserved better, more transparent and human financial services that would allow them to be in control of their money and their future. We started seven years ago in Brazil, a country with one of the most concentrated banking sectors in the world, and we were able to free millions of people of the bureaucracy and the pain. Through technology and human customer service, we were able to have a positive impact on their daily lives.”

About the Author

Headshot for author Thomas Price

Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.

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