Nubank confirms the start of operation of its latest Latin America expansion: Argentina. The financial company aims to win millions of clients who have zero access to the traditional banking system, following its recent introduction to the Mexican market under the subsidiary Nu.
The six-year-old fintech firm targets almost 16 million Argentines with its “challenging the system approach.” Half of Argentina’s adult population has limited access to the banking system. And Nubank aims to “contribute to changing the situation,” says Chief Executive and Founder David Vélez.
Rafael Soto, Uala’s (an Argentine mobile payment app) former Chief Executive Offer, will head the new venture. Nubank looks to employ 300 Argentines by the end of 2020.
Regarding its products and services to offer in Argentina, the fintech firm is still undecided, but plans to push through by 2020. Nubank is also looking to expand to other Latin American markets.
Since its launch in 2013, Nubank has transformed into one of the most valuable financial technology in the world. It’s “no-fee credit card” and “credit card first” approach earned the trust of most Brazilians. Nubank now has a total of 9 million customers, and recently sold private shares at $3.6 billion valuations.
Nubank gained over $420 million of investment from seven round of financing such as Sequoia Capital, Kaszek Ventures, Tiger Global Management, QED, Founders Fund, DST Global, Redpoint Ventures, Ribbit Capital Investment, Dragoneer Investment Group, Thrive Capital and Chinese gaming and social media firm Tencent.
The fintech firm is also in talks with Japan’s Softbank Group Corp (SFTBY) regarding an investment in Brazilian digital bank. Nubank could offer as much as $1 billion from investors, which might include multiple Softbank entities.
According to a report by Recode, Nubank is also considering another funding, not from Softbank. If the deal pushes through, Nubank will become the second-highest-valued fintech startup next to Stripe.
