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Berkshire Hathaway’s $500 Million Boosts Nubank’s 2021 Take To $1.15 Billion

Berkshire Hathaway’s $500 Million Boosts Nubank’s 2021 Take To $1.15 Billion

June 08, 2021 at 05:00PM
by PYMNTS

Investors keep flocking to financial technology company (FinTech) Nubank. On Tuesday (June 8), Nubank announced both a $500 million investment from Berkshire Hathaway and another $250 million from Sands Capital and Brazil’s Absoluto Partners and Verde Asset Management.

The total investment Brazil-based Nubank has pulled in this year is $1.15 billion, according to a company blog. The digital bank was recently recognized as one of the most influential companies in the world by Time magazine. CNBC named Nubank to its Top 50 Disruptor companies.

Nubank said it has “has consolidated itself as one of the most valuable financial institutions in Latin America.” All told, it has raised $2 billion in venture capital.

Nubank had already pulled in $400 million in funding, the company announced in January. In a blog post, the company said the investors included Singapore’s GIC, Whale Rock and Invesco.

The FinTech is in talks to go public on the U.S. stock market via an initial public offering (IPO), sources told Reuters in April. “We will probably do an IPO at some point in time, but it is not among our current priorities,” Nubank commented at the time. “We have the support of an amazing group of investors that share a long-term vision on our business.”

“With just eight years in the market, we managed to democratize access to financial services for 40 million people and revolutionize the financial sector as a whole in Latin America, to make it simpler, more transparent and humane, said David Vélez, founder and CEO of Nubank. “We are now entering new territories, such as investment and insurance, and expanding our operations to other countries such as Colombia and Mexico.”

Since it was founded, the company has expanded from its “core credit card product offering to a complete digital banking platform with a vast portfolio.” The company’s blog said that includes personal loans, investment products, life insurance and instant payment services.