The Brazilian digital bank Nubank announced a $330M equity capitalization in Mexico to continue expanding operations in that country.
In April 2022, Nubank already announced a $650M investment for its expansion in Mexico and Colombia. This investment was fueled by a three-year credit line financed by Morgan Stanley, Citigroup, Goldman Sachs, and HSBC, institutions that were underwriters of Nubank’s initial public offering in December 2021.
“In our three years in the country [Mexico], two with our credit card in the market, we have seen even more impressive growth than in Brazil in its first years. Because of this, coupled with Mexico’s great need for financial products that really meet people’s needs and are inclusive, we see an even greater opportunity for Nu in Mexico,” said Ivan Canales, CEO of Nu Mexico.
The Mexican banking regulator CNBV approved the expansion of Nu’s product portfolio, including the launch of the digital savings account and debit card that the company announced last month.
The $330M equity capitalization will be used to finance the expansion of the company’s portfolio and to achieve greater penetration in different segments in Mexico, bringing the total investment in the country to $1.3B. This investment makes Nubank one of the largest foreign investors in Mexico.