Nubank which is located in Sao Paulo, Brazil started its operations in 2013. The founder, CEO of Nubank is David Velez. It is a Fintech company which is acting as a credit card operator and digital bank.
Products Nubank deals with
Among different products, it deals with Microfinancing. For Nubank Mastercard and NuConta, the annual fees charged is minimal. Its primary product is Credit card which is maintained through a mobile application.
Investments in the past and its Investors
In 2018, the company’s valuation exceeded $ 1 Billion and reached the imaginary status of being the third company in Brazil to date. Investors to this include QED Investors, Sequoia Capital, DST Global, Kaszek Ventures, Tiger Global Management, Founders Fund, and Goldman Sachs. During the first two years of incorporation, it raised $ 423.40 Million.
Development to the website
To develop its website Nubank is uses deep technologies. Among the web interface and user experience of 8,214,713 monthly visitors, the rank of Nubank is around 9,456.
Tencent’s Investment in Nubank
Tencent which is a Chinese based internet gaming and social company invested $180 million in Nubank on Monday. It had invested $90 million directly and another $90 million through the secondary market. With its total valuation Nubank, at present is one of the highly respected start-ups in Latin America. For Cristina Junqueira and David Velez, this is a vast and planned investment where the transaction platform and financial services products seem to be unmatched in western Europe or the U.S.
In the Words of David Velez
Velez has remarked that there is much scope to learn from the Chinese financial market. Velez will implement these lessons back into their market which is in Brazil. China ranks first in financial services in the whole world because of its technology companies which can offer multi-product platforms. Through this investment, Tencent will now know have the opportunity for NuBank to serve 5 Million credit card holders, the plan of action which the company is employing to develop the services to other banks and the savings account. At present, there are more than 20 million people who have sanctioned for the card. These end-users are active who wants to get everything from Nubank. He also remarked, there is no need for raising another round of capital funding as Tencent would be offering help to them. Tencent would help them in the areas of customer loans, payments, machine learning, and engineering.
In the words of Junqueria
Cristina Junqueira VP of Branding & Business Development and Co-founder of Nubank remarked that this Nubank will be serving millions of people in Brazil with a savings account, credit or through a checking account. This is the most significant milestone which they have achieved. By looking into India’s demonetization as an example Brazil bank also scrutinizes the possibility of payments.
As the hurdles for the banking is much higher, Velez and Junqueria said that there is a significant number of opportunities to expand their business in developed markets like Brazil. Nubank has been aspiring to change the scenario of significant oligopolies and unfair means of creating the wealth for mass. As of now, they can achieve this as there is a support of Tencent’s.
As the giant company, Tencent is now investing in Nubank, it can have the feasibility of building a platform which caters personal finance services. This gives a scope to Nubank to learn about the Chinese markets and implement the lesson into their Brazilian market.