Brazilian digital bank Nubank secured a $650 million line of credit to accelerate its growth in Mexico and Colombia.
The funds come from a three-year local currency line of credit funded by multinational financial services giants Morgan Stanley, Citi, Goldman Sachs and HSBC.
These institutions also acted as underwriters for Nubank’s initial public offering (IPO) in December 2021, in which the fintech raised approximately $2.8 billion.
Nubank CEO and Founder David Vélez said, “We are redoubling our efforts in Mexico and Colombia to continue to grow and generate positive local impact through the financial inclusion of millions of Latin Americans.
Funding will be directed to three main areas: technology and product development, expanding the company’s customer base and hiring new talent.
Mexico and Colombia, along with Brazil, account for 60% of Latin America’s GDP and population, according to Nubank, and are therefore “extremely strategic” markets for the company.
Nubank, known as Nu in Mexico and Colombia, has been issuing credit cards in Mexico since 2020 and now has 1.4 million customers as of EOY 2021. In contrast, Nu has 114,000 customers in Colombia , an increase of 3 times compared to the fourth quarter of 2021.
The fintech is building an engineering, product and data science center in Colombia with a view to developing the next generation of financial services in the country.
Nu Colombia’s General Manager, Catalina Bretón, says, “We have grown at an intense pace and this regional credit facility allows us to continue to move faster in our goal of fighting bureaucracy to empower our customers.
Nu Mexico General Manager Emilio González added, “This funding confirms our long-term commitment to Mexico and will allow us to bring our products to millions more people.
Founded in 2013 in Brazil, Nubank was launched in Mexico in 2019 and later in Colombia in 2020. It has approximately 54 million customers and is the largest credit card issuer in Mexico.