Chinese tech giant Tencent has made its debut investment in Brazil’s fintech sector with the acquisition of a minority stake in Nu Pagamentos SA, also known as Nubank.
Both companies have announced that Tencent obtained an undisclosed minority stake in Nubank for a consideration of USD$180 million, comprised of a $90 million capital increase as well as the payment of $90 million for equity from existing shareholders.
In an official statement Tencent President Martin Lau said that the Chinese tech giant hopes to help Nubank to “build a full-service personal finance platform.”
Nubank was first launched in 2013 and has since raised $330 million via six financing rounds, including $150 million in the last round led by DST Global Investment Partners.
The Brazilian fintech company already has 2.5 million customers signed up to its digital payment accounts service, and has issued 5 million fee-free credit cards,
In January the Brazilian central bank gave its approval for Nubank to make consumer loans, with the company expected to commence lending by 2019.