This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process. Opinions expressed by Entrepreneur the contributors are theirs.
Nubank founded in Brazil by a Colombian David Velez , has become one of the largest digital financial services companies in the world. To accelerate 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 line of credit funded by Morgan Stanley, Citi, Goldman Sachs and HSBC, institutions that were underwriters for Nubank’s initial public offering (IPO) in December 2021, during which the company has raised about $2.8 billion, the company reports. Funding will be invested in key areas such as: technology development and product innovation, customer growth and attracting top talent to the region .
“The rapid growth we’ve seen in Mexico and Colombia has exceeded our highest expectations. This financing reflects the confidence of major investors and shareholders in our business model and our growth potential,” said David Vélez, CEO and Founder of Nubank, who added: “We have redoubled our commitment in Mexico and Colombia to continue to grow and generate 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 approximately 54 million customers in the region and is already the main issuer of credit cards in Mexico.
“At Nu Colombia, we are reinventing the future of financial services for the country and we are working decisively to become leaders in the sector. We have grown at a steady pace and this regional line of credit allows us to continue to move faster with the aim of fighting bureaucracy to empower our customers,” said Catalina Bretón, General Manager of Nu Colombia, who concluded: “ This funding, which reaffirms the solidity of Nu and our confidence in the country, will target the growth of the team and the development of the technology that has already allowed us to free thousands of Colombians from complexity”.
Both markets are a key part of Nubank’s expansion, which is why the company has decided to invest the money to consolidate in these countries.
(This text was originally published on Social Geek)