Nubank obtains US$ 650 million line to expand in Mexico and Colombia

Nubank announced this Monday (11) that it is accelerating its expansion in Mexico and Colombia through a US$ 650 million credit line.

Proceeds from the three-year local currency facility are financed by Morgan Stanley, Citi, Goldman Sachs and HSBC, banks that participated in Nubank’s December 2021 IPO, in which the company raised approximately US$2.8 billion.

Nubank, which includes Warren Buffett’s Berkshire Hathaway, said the funding would go towards technology and product development, growing its customer base and hiring staff.

While most of Nubank’s products are developed and designed in-house, the company has recently sought partnerships, said Nubank Chief Executive David Vélez, citing the company’s marketplace in Brazil, where customers can shop at retailers, and insurance products promoted in partnership with Chubb.

“We are constantly evaluating the possibilities of expanding our product offering,” said Vélez.

Nubank offers credit cards in Mexico and Colombia and operates under the “Nu” brand. The company ended the year with more than 1.4 million customers in Mexico and 114,000 customers in Colombia.

“Our priority is to continue developing this product to expand our customer base and release more features,” he added.

Nubank’s presence in Brazil, where it offers services that include credit cards, savings accounts, investments, insurance and personal loans, gives an “interesting idea” of where the company is going in Mexico and Colombia in the next five to 10 years. , said Vélez, without giving details.

The executive previously told Reuters that Nubank is preparing to launch current accounts in Mexico this year after receiving regulatory approval for the acquisition of local bank Akala.