July 26, 2019 / 7:26 PM / in 22 days

Brazil fintech Nubank raises $400 million in round led by TCV

FILE PHOTO: The logo of Nubank, a Brazilian FinTech startup, is pictured at the bank's headquarters in Sao Paulo, Brazil June 19, 2018. REUTERS/Paulo Whitaker

SAO PAULO (Reuters) - Brazilian financial startup Nubank raised $400 million in a new financing round led by U.S. investment firm TCV, Nubank said in a statement on Friday.

Existing investors Tencent Holdings Ltd (0700.HK), DST Global, Sequoia Capital, Dragoneer, Ribbit Capital and Thrive Capital also participated in the seventh funding round. Since its foundation in 2013, Nubank has raised $820 million from investors.

Among TCV’s prior investments are Netflix Inc (NFLX.O), Spotify Technology SA (SPOT.N) and Airbnb Inc.

David Velez, Nubank’s founder and CEO, said in an interview with Reuters that the company will use the proceeds to accelerate growth in Brazil and enter new countries in Latin America. This year, Nubank started operations in Mexico and Argentina.

The new financing round also comes as Nubank has expanded its product portfolio beyond a free-of-charge credit card. It currently offers digital savings accounts and personal loans. This month, it also launched digital accounts for small business owners.

The Wall Street Journal reported earlier on Friday that Nubank was valued at more than $10 billion in this new financing round.

Nubank, which did not disclose its valuation, has roughly 12 million clients.

Reporting by Aluisio Alves; Writing by Carolina Mandl; Editing by Cynthia Osterman

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