Brazilian neobank Nubank is readying an initial public offering (IPO) greater than $2 billion by year’s end, according to a Thursday (Aug. 12) report from Bloomberg.
As PYMNTS reported previously, this is not the first time the Latin American FinTech company has reportedly considered an IPO. In April, the bank was discussing going public on the U.S. stock market and had been consulting with advisers in New York.
Read more: Brazil’s Digital Bank Nubank In Talks To Go Public In US
With Nubank’s January Series G funding round that netted $400 million, its valuation rose to $25 billion, PYMNTS reported previously. At that rate, the IPO would be one of the biggest to come out of South America. At the time, the company said that since its last investment round in July 2019, it had nearly tripled the number of customers in Brazil – from 12 million to 34 million – making it the world’s largest independent online bank.
Also see: Brazilian FinTech Nubank Raises $400M, Expanding In Latin America
Going forward, Nubank is considering seeking a valuation of more than $40 billion, according to Bloomberg.
One of the largest drivers in Nubank’s upward funding momentum is Berkshire Hathaway, a Nebraska-based real estate company owned by philanthropist and business mogul Warren Buffett. As PYMNTS reported in June, Berkshire Hathaway contributed a $500 million investment, driving the bank’s funding in 2021 alone to $1.15 billion. Altogether, Nubank has generated $2 billion in venture capital.
You may also like: Berkshire Hathaway’s $500M Boosts Nubank’s 2021 Take To $1.15B
The June funding pushed Nubank’s valuation to $30 billion, according to Forbes.
Nubank, which was founded in 2013, began with just a credit card offering, building trust with customers without requiring them to put out any upfront money, as would be the case with a debit card. This model continues today when the company enters new markets. Once customer trust is established, Nubank works to launch debit and savings accounts.
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