Brazil-based mobile financial services provider Nubank collected $400m in series F capital on Friday from a consortium led by growth equity firm TCV that featured internet company Tencent.
DST Global, Sequoia Capital, Dragoneer Investment Group, Ribbit Capital and Thrive Capital also took part in the round, which valued Nubank at more than $10bn according to the Wall Street Journal. The transaction remains subject to customary closing conditions.
Reports early last month suggested telecommunications conglomerate SoftBank was in talks to lead a round sized at up to $1bn, but people familiar with the matter told the Journal those discussions broke down.
Founded in 2013, Nubank started out by providing a fee-free credit card that users manage through a mobile app. It has since added current and savings accounts for consumers, entrepreneurs and small and medium-sized enterprises, a loyalty rewards program and a personal loans product.
Nubank is preparing an international expansion this year, having already hired teams for Argentina and Mexico. The series F funding will enable it to accelerate those plans, as well as driving continued growth in Brazil and hiring additional staff.
The company has now raised $820m in funding altogether. Tencent had previously injected $180m in October 2018, investing $90m directly and acquiring another $90m worth of shares from undisclosed shareholders through a secondary transaction.
Nubank’s earlier funding came from DST Global, Founders Fund, Redpoint Ventures, Ribbit Capital, QED Investors, Dragoneer, Sequoia, Tiger Global Management, Kaszek Ventures, Thrive Capital and Nicolas Berggruen.
