Nubank FinTech Grows Client Base By 25 Pct Since August

The largest FinTech startup in Latin America — Brazil’s Nubank — is reporting a 25 percent increase in the number of clients since August, Reuters reported on Friday (Oct. 11).

The digital bank said at the Brazil Investment Forum in Sao Paulo that it has 15 million clients, according to Nubank founder and CEO David Vélez. Vélez said that 10 million out of the 15 million clients are holders of the bank’s credit card.

“We have opened many new business fronts in the last 12 months. We are growing quickly,” he said.

Nubank offers a no-fee credit card funded in part by China’s Tencent. The company was reportedly valued at $10 billion in July.

The FinTech has expanded beyond fee-free credit cards and now offers bank accounts and associated services for both businesses and individuals.

Vélez said the bank aims to offer direct credit interest rates to consumers that are 30-40 percent less than the usual rates in Brazil.

Nubank raised $400 million in a Series F round of funding led by TCV, making it the first major Latin American investment by the Menlo Park, California fund. 

Nubank was founded in 2013 as a small startup aimed at giving people control over their financial lives. As of this seventh round series F funding, the company is now the largest “digital bank” in the world. 

Previous contributors also participated in the funding round, including Tencent, DST Global, Sequoia Capital, Dragoneer, Ribbit Capital and Thrive Capital. As with other Nubank investors, this is the first time TCV has invested in a company in Latin America.

Nubank said it is the fastest-growing FinTech, having doubled its customer base since October 2018. 

Nubank, which started out with an app-based credit card and rewards program, has expanded its product line to include personal loans and digital savings accounts for regular consumers and similar products for SMEs and microbusinesses.