Earlier this year, Goldman Sachs invested in Nubank, Brazil’s mobile credit card that recently became one of this year’s three Latin American unicorns. Now Morgan Stanley will be following in Goldman Sachs’ footsteps with an investment in Geru, a Brazilian online lending startup.
Morgan Stanley has reportedly offered a US$14M credit line to the fintech startup in the search of higher yields from their investments. The Geru bonds will reportedly return dividends of 11.2% yearly, higher than most established companies. Geru is also currently raising a US$50M equity round from international investors.
The fintech market in Brazil is expanding rapidly, with a reported 210 fintech startups operating in Brazil now. Goldman Sachs estimates that these companies could be sitting on a revenue pool of up to US$75B in the next 10 years as they continue to fight against established banks.
This story was originally reported on Bloomberg.
