July 24, 2024


Unlimited Technology

Nubank to expand in Mexico with new banking designation

MEXICO CITY, Sept 21 (Reuters) – Brazilian financial startup Nubank said on Tuesday it acquired in Mexico a Sociedad Financiera Popular, which comes with an operating license that will enable the company to expand its product portfolio in the country.

The company’s Mexican subsidiary Nu Mexico will be able to offer new services through the designation, pending approval by Mexico’s National Banking and Securities Commission (CNBV), it said in a news release. Nu Mexico did not give details on the new services.

“Closing this acquisition with the approval of the CNBV and thus being able to continue with our expansion plans of our product portfolio is, without a doubt, an important milestone to continue growing in Mexico in a sustainable, orderly and responsible manner,” Emilio Gonzalez, general manager of Nu Mexico, said in the statement.

Nubank, founded in 2013, was recently valued at $30 billion in an investment round led by Warren Buffett’s Berkshire Hathaway Inc. https://www.reuters.com/business/finance/nubank-partners-with-softbank-backed-lending-fintech-creditas-2021-09-13

It expanded to Mexico in March 2020 with in initial investment of $135 million. It also operates in Colombia.

The fintech startup has more than 40 million customers, it said.

(Reporting by Cassandra Garrison; Editing by Mark Porter)

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