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“Talks are in the initial stage and final values have not yet been determined,” said an anonymous source.
Sources also say SoftBank, the Japanese conglomerate with eyes glued to Latin America, could invest up to US$1 billion. In the grand scheme of things, Nubank’s valuation could reach US$10 billion, according to Vox’s tech blog, Recode.
All things considered, Nubank seems to be well on its way to becoming the most valuable fintech startup in Latin American history.
Although Nubank is “always considering opportunities to raise funds,” the challenger bank refused to disclose any information on the SoftBank deal. Likewise, Softbank also declined to comment on the recent development.
Nubank has already raised US$400 million throughout seven financing rounds since its founding five years ago. Past investors include Sequoia Capital, Kaszek Ventures, Tiger Global Management, and Tencent. Last year, Tencent’s contribution of US$180 million for Nubank also helped the company raise its valuation to US$4 billion at the time.
Moving forward, the new capital would assist Nubank in expanding operations outside of Brazil. In its native country, it already has 8.5 clients using its services, such as alternative credit cards for the unbanked. In May, the fintech also premiered in Mexico where it will manage a team of 100 by year-end.
Last month, SoftBank also invested in Colombian last-mile delivery enterprise Rappi as part of its Innovation Fund valued at US$5 billion. Previously, SoftBank has also supported Gympass, Creditas, and Loggi throughout the region.