Nubank, a Brazil-based FinTech that has amassed more than 40 million clients in Latin America in part by looking for business among constituencies ignored by traditional banks, could be worth more than $55 billion when it holds a planned initial public offering (IPO), Reuters reported.
When Warren Buffett’s Berkshire Hathaway recently invested in Nubank, the deal carried a valuation of $30 billion, according to the report.
A valuation in the range suggested by unnamed sources that Reuters cited would make Nubank not only bigger than any bank in Brazil, but also would put the company among the world’s largest FinTechs.
Nubank officials declined to comment, the report stated.
Data from Brazil’s central bank indicated that Nubank posted a profit of $1.3 million for the first quarter of 2021, according to the report.
Reuters cited data by CBInsights indicating Nubank is the seventh most-valuable FinTech in the world behind players including Stripe, Klarna and Revolut.
Investment bankers at Morgan Stanley, Goldman Sachs and Citigroup are involved in the IPO preparation, the report stated.
Earlier this month, Nubank was working toward a $40 billion valuation.
Read more: FinTech Company Nubank Eyes $2B IPO
Nubank launched in 2013 with only one product, a credit card. The offering was part of a Nubank plan to build trust among new customers before asking them to make deposits to fund products such as debit cards. The process is one the company has used in multiple new markets.
When word emerged in late June that Nubank was seeking bankers to help conduct an IPO, the news caught many observers by surprised. The latest media accounts about a possible IPO have one occurring in late 2021 or early 2022.
Read more: Brazil’s Nubank Looks For Underwriters, Report Says
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