Warren Buffett-Backed Brazil’s Nubank is seeking a valuation in its planned U.S. initial public offering that would push the eight-year-old fintech past the $55.4 billion value of the country’s top traditional lender.
Sources said, Warren Buffett’s Berkshire Hathaway Inc had funded. Nubank was valued at $30 billion. With 40 million clients in Latin America, Nubank is the latest of several fast-growing financial services companies – often serving customers overlooked by banks – grabbing investors’ attention.
If Nubank is listed at a market cap greater than Itau Unibanco Holding SA’s $55.4 billion, it would vault into the ranks of the world’s largest fintechs, ahead of recently listed Robinhood Markets Inc, for example.
One source said that, Nubank’s bankers have pitched a valuation of as much as $100 billion. But the source said, the Brazilian fintech unicorn was unlikely to be valued so highly at the time it goes public.
Post investment, from a core credit card product, the firm now offers personal lending, life insurance, products for micro entrepreneurs, instant payment services, and investment products.
While Brazil dominates the customer base, Nubank has won 1.5 million customers in Mexico in just over a year and has 300,000 Colombians signed up to a waiting list. Moves into more countries are expected.It has already made its first strides out of Latin America, co-leading a $45 million round in Indian neobanking startup Jupiter earlier this month.