Brazil-based challenger bank Nubank has reportedly received a $180m investment from Chinese backer Tencent.
Following the deal, the company will receive a minority stake in Nubank, according to a report by Reuters. The deal is being made up of a $90m capital increase to the company and a $90m acquisition of partial stakes from current shareholders, it said.
The company CEO has allegedly stated that Nubank didn’t need to raise additional capital this year, but working with Tencent will help to bolster its payments, consumer loans, engineering and machine learning growth.
Founded in 2013, the company is a digital banking solution for Brazilians that gives consumers access to fair and transparent services. The company provides a mobile banking account, which enables them to send and receive money through transfers including QRs.
Nubank also provides consumers with a Mastercard that can be used at more than 30 million merchants around the world.
Earlier in the year, the challenger bank raised $150m in a Series E investment round which was led by DST Global. The company raised the funds in order to further the expansion of its offerings and its reach.
Tencent recently teamed with KKR to make a $175m investment into Voyager Innovations, bagging a minority stake in the enterprise. Singapore Voyager is a technology developer with a goal of accelerating the digitalisation and financial inclusion in the Philippines.
Copyright © 2018 FinTech Global