Chinese group Tencent buys stake in Brazilian company Nubank

9 October 2018

Chinese group Tencent plans to invest US$200 million to buy a 5.0% stake in Brazilian financial technology company Nubank, according to The Information website.

The deal valued Nubank, a company that markets a credit card and online bank accounts, at US$4 billion, double the amount it was valued for in March, making this business one of the most valuable in Latin America.

The Tencent group owns the WeChat application, which has its own mobile payment system, WeChat Pay, so following this acquisition it is expected to share technology with the Brazilian company.

Nubank reached the market in 2013 with a digital credit card with no annual fee and, according to the Brazilian press, was successful in a market marked by the concentration of large financial institutions, more recently providing customers with digital accounts.

Brazilian business magazine Exame reported that digital bank Nubank has 5 million customers in the credit card segment, which places the company among the five largest issuers in Brazil. (macauhub)