Business

Argentina is the next target of Brazilian fintech Nubank

Six-year-old startup moves forward in its Latin American expansion strategy

  • Nubank has already raised $400 million from investors such as China’s Tencent Holdings Ltd
  • The first market expansion target was Mexico, in May

Nine million customers, private shares sold at a $3.6 billion valuation and one of the biggest card issuers in Latin America’s largest economy. Brazilian fintech firm Nubank is following a path of fast-paced growth and is now starting a new chapter in its expansion strategy – and the target is Argentina.

After announcing an office ouverture in Mexico last May, the fintech heads now to the South American country under the direction of Rafael Soto, former CEO at Argentina’s financial management app Ualá.

We’re looking into expanding to other Latin American markets as well,” co-founder Cristina Junqueira said in an interview to Bloomberg. According to her, Nubank’s goal is to have 300 employees in Argentina by the end of 2020, and the office will also serve as a tech hub to support their other initiatives in Latin America.

A few days ago, Bloomberg published a note about preliminary talks between SoftBank Group and Nubank about a possible negotiation in which the Japanese group would purchase a stake in the Brazilian fintech. Although the exact figures weren’t confirmed yet, Vox reported that Nubank wants to become one of the most valuable fintech startups in the world, aiming for a valuation ranging from $8 billion to $10 billion.

Backed by big VC players such as China’s Tencent Holdings Ltd, Sequoia Capital, Tiger Global Management and Kaszek Ventures, Nubank hasn’t yet decided on the first solution to be launched in the country – but given the record until now, their future in Argentina certainly seems promising.