Brazil’s Nubank raises investment from Buffett, others; market valuation hits US$30 billion

RIO DE JANEIRO, BRAZIL – Nubank has closed two extensions of the Series G investment made earlier this year, which total US$750 million. The amount is almost double the US$400 million raised in the February investment round.

The largest investor in this round was Berkshire Hathaway, owned by mega-investor Warren Buffett, which contributed US$500 million. The US$250 million investment was led by Sands Capital and included the participation of Brazilian management companies Absoluto and Verde, also owned by renowned investor Luis Stuhlberger.

According to sources familiar with the round, Nubank’s valuation jumps from US$25 billion to US$30 billion with the new contributions. The amount represents about half of the market value of Itaú, the country’s largest bank.

Nubank’s plan is to further expand its operations in Latin America, where, in addition to Brazil, it operates in Mexico and Colombia.

“About 50% of the population in Latin America does not yet have a bank account. Credit card penetration is, on average, 21%, while in the United States this figure hits 70%. This new funding will help us keep democratizing access to financial services across the region. We are honored to welcome a world-class investor to support us on this journey,” says David Vélez, Nubank’s founder and CEO.