Note: The round was confirmed post-publication. For more details, read our July 29 update.
Fintech startups in Latin America are attracting huge sums of capital, and NuBank is the latest recipient.
As reported by the Wall Street Journal, Brazil-based Nu Pagamentos SA, known as Nubank, is aiming to raise $400 million at a valuation of $10 billion from TCV, a California-based growth fund with 340 reported investments under its belt, according to Crunchbase. VCs in the Latin America region, in general, seemed to be attracted to fintech startups:
If Nubank closes the round with TCV, the firm’s total funding would come to $1.1 billion, putting it just behind Rappi, an ecommerce shop, as the most funded Latin American startup to date.
Notably, SoftBank did not participate in the deal, even though the telecom giant is on track to raise a second Vision Fund worth $108 billion, and has announced plans to invest in Latin America. In June, SoftBank invested in two other Brazilian startups: Loggi and Creditas. In fact, Brazil captures a large portion of funding in the region, as the chart below shows:
If more deals like Nubank’s $400 million round continue, Latin America is going to be a hard region for anyone involved in the tech community to ignore. As Mary Ann Azevedo reported in April, Latin America has “arrived” among global VCs. Julie Ruvolo, director of venture capital for LAVCA, told Crunchbase News that “the presence of global investors” has driven increased interest in the region.
For founders, hopefully that interest converts to more term sheets.