Nu Mexico To Receive $135 Million Infusion To Fuel Early-Stage Operations

To fuel its early-stage business in Mexico, Nubank’s unit in the Latin American country is receiving an infusion of $135 million, Bloomberg reported.

Brazil-based Nubank is providing its Nu Mexico with a $70 million infusion of funds. In addition, Bank of America, Goldman Sachs and J.P. Morgan Chase will offer revolving credit lines with a $65 million value, Bloomberg reported, citing its interview with General Manager Emilio Gonzalez.

Gonzalez said that it is probable that Nu Mexico will garner additional infusions next year and after that time, according to Bloomberg. He also noted that Nu Mexico would consider purchases that could increase its foothold in Mexico but that there aren’t currently any specific companies Nu Mexico is thinking of buying.

Nubank has become one of the largest financial institutions (FIs) in Latin America. It debuted its inaugural credit card in Mexico in March of last year, Bloomberg reported.

“Even though we launched in a very complex period, with a pandemic along the way, we’ve noticed that we have a product that is much needed in the market,” Gonzalez said, as per Bloomberg.

Nu Mexico might mull over expanding from credit cards into offerings like insurance, loans for individuals, debit cards and rewards programs. It has garnered 1.5 million requests for credit cards to date, but Bloomberg noted that the firm didn’t disclose the number of credit cards that were given the green light and are still active.

For its credit card users, Nu Mexico tends to offer loans ranging from $200 to $400, according to Bloomberg.

Nubank announced in January that it had landed $400 million in a Series G funding round led by Invesco, Whale Rock and Singapore’s GIC. Sequoia, Ribbit Capital, Dragoneer and Tencent also took part in the round.

Nubank was established in 2013 by David Vélez, Cristina Junqueira and Adam Edward Wible.

Vélez previously spoke with PYMNTS to discuss the considerations that go into enabling digital banking services and how the FI is adapting to satisfy new customer needs amid the pandemic.