LATAM Fintech | 2021 #21
REPORT
Nubank revealed that its customers skew younger than those at established banks, per findings included in its newly disclosed US initial public offering (IPO) filing.
The Brazilian neobank attributed its data to a mix of its own research and assistance from Oliver Wyman. The findings, dated September 30, 2021, show:
59% of Nubank’s customers were under 35 years old, versus just 30% for incumbents.
The gap is also stark when measuring people under 45, with the demographic comprising 81% of Nubank’s customers versus 52% for incumbents.
Nubank also predicts that a subset of its young customers—those ages 20 to 24—will experience a real-income boost of about 70% over the coming decade.
NOW, ON TO THE SUMMARY OF THE LATEST NEWS IN LATAM
NEWS HIGHLIGHTS
The German fintech N26 arrived in Brazil. Valued at US$9 billion (R$49.904 billion), the company starts its operation by selecting 2,000 people to test the brand’s application.
The company has been selling itself as a “2nd generation” fintech in an attempt to differentiate itself from pioneers Nubank, Banco Inter, and C6 Bank in Brazil. The idea is, in addition to facilitating access to financial institutions, to improve Brazilians’ relationship with money. There are still no details on how this will be done.
The bank has shown interest in the Brazilian market since at least February 2019, when it was already waiting for a license from the Central Bank. The official launch, open to all interested parties, will take place in the first half of 2022. It is the bank’s first 100% local team, which has 50 employees in Brazil.
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INDUSTRY HIGHLIGHTS
⭐️ Brazilian fintech Zro Bank wants to bring crypto as a service (CaaS) to the Fintechs. Link here.
⭐️ Since putting its debut in Brazil on hold, the German digital bank N26 has seen the market change a lot, with the advance of different players, in an accelerated movement by the pandemic. Link here.
⭐️ Nubank and Sequoia Capital have partnered up to invest in Latin American startups. Link here.
BRAZIL
Nu Holdings, the Brazilian digital bank backed by billionaire Warren Buffett’s Berkshire Hathaway Inc., is seeking a valuation of as much as $50.6 billion in its initial public offering, making it one of Latin America’s biggest companies.
Nubank, as the firm is known, will market at least 289 million shares for $10 to $11 each, according to a filing Monday with the U.S. Securities and Exchange Commission.
At the top of that range, it would debut as the region’s sixth most valuable firm and its largest financial institution.
With plans to raise more than $3 billion, Nubank’s IPO would be the third-largest on a U.S. exchange in 2021.
It would trail only the South Korean e-commerce company Coupang Inc. and China’s biggest ride-hailing company, DiDi Global Inc.
COLOMBIA
On Thursday, many investors were excited by the announcement of an upcoming IPO of Rappi, the main delivery platform in Latin America and the second Colombian unicorn.
Sadly, the company denied the statements of its co-founder, Juan Pablo Ortega, and flatly denied that they are planning to launch on the stock market.
In the framework of the Web Summit conference in Lisbon, Portugal, the Rappi co-founder would have revealed that the platform was getting ready to be listed on Wall Street with an IPO during the first half of 2022, as reported by Bloomberg LP.
ARGENTINA
Argentine financial services startup Ualá has reached an agreement to buy Mexican bank ABC Capital SA, as part of its bid to keep growing abroad.
Ualá, which was valued at $2.5 billion in its latest financing round, will acquire 100% of Monterrey-based ABC Capital, according to its founder and chief executive officer Pierpaolo Barbieri.
As part of the transaction, ABC’s existing shareholders will become minority shareholders of Ualá.
CHILE
Fintual, a fintech and asset manager based in Chile, received a $39 million round led by Sequoia Capital — it is the venture capital fund’s first investment in Chile.
The resources will be used to accelerate the expansion of fintech in Mexico, where it landed last year.
In June, Fintual raised a raised $15 million from KASZEK, who joined Y Combinator, ALLVP, and Oskar Hjertonsson from Cornershop by Uber, who were seed capital investors in the startup.
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