Brazil-based neobank Nubank raised $400m in series G funding yesterday, from a consortium that included internet group Tencent and which valued it at $25bn, TechCrunch reported.
Singaporean sovereign wealth fund GIC co-led the round with investment advisers Whale Rock and Invesco, while investment group Dragoneer and venture capital firms Ribbit Capital and Sequoia Capital also participated.
Nubank provides digital banking services including an online bank account, debit card, a lending practice and a loyalty points scheme to customers in Brazil, Mexico and Colombia.
Co-founder and chief executive David Velez told TechCrunch the company has increased its customer base from 12 million in 2019 to 34 million today. The series G proceeds will be allocated to the expansion of its business across Latin America.
The round took Nubank’s funding to $1.22bn since it was founded in 2013. Growth equity firm TCV led its $400m series F round in mid-2019, investing with Tencent, Sequoia, Ribbit Capital, Dragoneer, DST Global, and Thrive Capital at a valuation of over $10bn.
Tencent had invested $90m in the company the previous year in tandem with a $90m purchase of shares from existing shareholders.
Ribbit Capital, Dragoneer, DST Global and Thrive Capital were all existing investors. Nubank’s earlier backers include Sequoia, Founders Fund, Redpoint Ventures, QED Investors, Tiger Global Management, Kaszek Ventures and Nicolas Berggruen.
