Nubank, Latin America’s largest digital bank, has completed a $330 million capitalization to expand its operations in Mexico. The fintech announced that it has also received authorization from the local regulatory body to increase its product portfolio with Mexican customers.
In a press release, Nubank pointed out that the new investment adds to the $1 billion figure the company had already invested in the country.
“Our mission is to revolutionize financial services in the country and give Mexicans control of their money, in an app and without complexity,” highlighted Ivan Canales, General Manager of Nu Mexico.
Portfolio expansion in Mexico
The CNBV, the local banking regulator, approved the expansion of Nubank’s product portfolio in Mexico. Now, the company will be able to launch the digital savings account and debit card, new features announced last month.
“We celebrate the regulator’s vision to encourage more competition in the market and consequently enable better and more inclusive financial products in Mexico,” Canales added.
The Mexican operation represents Nubank’s second-largest market and is a strategic target in the company’s internationalization roadmap.
According to the fintech, more than three million customers are already in Nu Mexico’s base, and the company is the largest provider of credit in the country.
Great market potential for Nu’s operations
“We are investing heavily in Mexico because we believe in the incredible potential of this vibrant market and the opportunity for growth as more people gain and increase access to high-quality financial services,” said Cristina Junqueira, co-founder of Nubank.
Earlier this month, Nubank CEO and co-founder David Vélez said the fintech would use part of the funds raised in its initial public offering for contributions to the Mexican operation.
Overall, Nubank has reached break even, but the positive results have come fundamentally from the operation in Brazil, which is the largest and most mature of the group. In its public offering on the New York Exchange, the neobank raised about $2.8 billion and had not used most of the funds until then.
Nu, which began operations in Mexico in 2019, holds 2% of the local financial market penetration, focusing only on the credit card business.
“With less than a decade on the market, Nubank is already the sixth largest financial services institution in all of Latin America by number of active customers. Mexico and Colombia have shown stronger initial growth than Brazil and potentially represent an even greater opportunity for the company,” says Cristina Junqueira, co-founder of Nubank.