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Brazil's Nubank to start operations in Argentina, eyes 16 mln without accounts

Credit: REUTERS/Paulo Whitaker

Brazil's Nubank said it will start operations in Argentina, aiming to win millions of clients who do not have access to the traditional banking system there, the fintech firm said on Wednesday.

SAO PAULO, June 12 (Reuters) - Brazil's Nubank said it will start operations in Argentina, aiming to win millions of clients who do not have access to the traditional banking system there, the fintech firm said on Wednesday.

The announcement came less than two months after the company debuted in the Mexican market, its first international expansion.

"Almost 16 million Argentines lack access to the banking system, this is almost half of the adult population, and we want to contribute to changing this situation," Chief Executive and Founder David Vélez said in a statement.

To date, Nubank has raised about $420 million in seven investment rounds from major funds such as Sequoia Capital, Kaszek Ventures, Tiger Global Management, QED, Founders Fund, DST Global, Redpoint Ventures, Ribbit Capital Investment, Dragoneer Investment Group, Thrive Capital and Chinese gaming and social media firm Tencent 0700.HK, it said.

Nubank is also in talks with Japan's Softbank Group Corp 9984.T regarding an investment in the Brazilian digital bank, a source familiar with the matter told Reuters last week, with a new financing round seen as supporting its international expansion effort.

Nubank has around 8.5 million customers in Brazil and more than 9 million in Latin America.

(Reporting by Alberto Alerigi; Writing by Ana Mano; Editing by Dan Grebler)

((ana.mano@thomsonreuters.com; Tel: +55-11-5644-7704; Mob: +55-119-4470-4529; Reuters Messaging: ana.mano.thomsonreuters.com@reuters.net))

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