Nomad, "the Brazilians' dollar bank", snags $32 million from U.S. VC fund Stripes

Brazilian fintech offers a complete solution for opening a bank account in the United States, investments, international shopping and other dollar transactions

Patrick Sigrist (Nomad's co-founder), Lucas Vargas (CEO) and Eduardo Haber (co-founder). Photo: Courtesy
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Nomad, the fintech that allows Brazilians to open a bank account in the United States digitally, announced it raised a $32 million Series B (about BRL 160 million) round led by US venture capital fund Stripes and followed by monashees, Spark Capital, Propel, Globo Ventures and Abstract. After less than two years operating, the fintech has already raised more than BRL 300 million.

Founded in 2019 by Patrick Sigrist (founder of iFood), Marcos Nader and Eduardo Haber, Nomad presents itself as the fintech for Brazilians who want to have “a life in dollars”. “Nomad was founded to democratize global financial access for all Brazilians,” said Sigrist.

The company enables the opening of a US bank account guaranteed up to $250,000 by the FDIC. Also, through the app, the user can make international purchases, transfers, payments, remittances, investments in global markets, among other transactions.

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According to the fintech, one of its differentials is the savings of approximately 10% in common transactions compared to international credit cards: while with a credit card from a Brazilian bank the exchange spread varies from 4% to 7% and the IOF is 6.38%, with the Nomad card, says the fintech, the spread on the commercial dollar is, at most, 2% and the IOF for dollars remittance is only 1.1%.

Besides the banking solutions, the fintech also offers a kind of curation of international investments, suggesting assets for each risk profile and thematic portfolios, such as cryptocurrencies or ESG, for example.

Nomad already has a customer base of 300,000 and plans to reach 1 million clients by the end of 2022. Lucas Vargas, Nomad’s CEO, explained that this goal was originally set for the end of 2023, but was anticipated due to the good performance of the fintech. “The security offered by Nomad’s account has pleased Brazilians. In addition, given the fragility of the Brazilian currency, Brazilians found a safe, simple and unprecedented digital solution.”

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According to Sigrist, the results achieved in recent months have confirmed the fintech‘s thesis and value proposition. “We knew the potential we would have by offering the first international dollar account for Brazilians, but we were positively surprised with a huge growth, which led us to raise more funds to continue improving our value proposition,” Sigrist said.

The newly raised capital will be invested in technology, with special attention to the fintech‘s investment platform. Nomad also plans to launch new products, invest in new marketing channels, and expand its team of 250 employees.

For Michael Vaughan, operating partner at Stripes, which led the round, Nomad meets two basic requirements of the fund: it promotes financial access through an outstanding user experience. “Whether spending, saving or investing, Nomad’s multi-product platform allows any Brazilian to build a financial life abroad. It is a Brazilian bank without borders.”

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