Business

Nu México buys Akala, a financial institution that will allow the fintech to offer a new range of products in the country

At the beginning of 2021, Nu announced an investment of US$ 135 million to boost Nu’s growth in México, primarily by scaling its local presence at a faster pace

Nubank partners with Creditas to offer credit products
Photo: Nubank/Blog
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  • Currently, Nubank has over 40 million customers in LatAm; 35 million in Brazil, and the rest in Mexico and Colombia;
  • Mexico is strategic for the company since it represents 20% of the population of Latin America, and according to INEGI figures, only 47% of its population is banked.

Nu México—Brazil’s neobank Nubank subsidiary in Mexico—announced this Tuesday the acquisition of Akala, a SOFIPO or Sociedad Financiera Popular, a kind of financial institution that will strengthen fintech‘s operations in the country and enable Nu to offer a new range of products.

Emilio González, general manager of Nu México, said in a statement that the company has received the approval of the Comisión Nacional Bancaria y de Valores (CNBV)’ for the deal. “Closing this acquisition with the approval of the CNBV and thus being able to continue with our expansion plans of our product portfolio is, without a doubt, an important milestone to continue growing in México in a sustainable, orderly, and responsible manner,” added González. 

READ ALSO: Buffett-backed Nubank hired investment banks to lead IPO, says a source

At the beginning of 2021, Nu announced an investment of US$ 135 million to boost Nu’s growth in México,  primarily by scaling its local presence at a faster pace. This market is strategic for the company since it represents 20% of the population of Latin America, and according to INEGI figures, only 47% of its population is banked. Currently, Nubank has over 40 million customers in LatAm; 35 million in Brazil, and the rest in Mexico and Colombia.

Nu launched its first product in Mexico—an international credit card with no yearly fee—in March 2020. According to the fintech, Nu has a net promoter score in Mexico of 94 points; something unusual not only in the financial segment but in any other.

READ ALSO: Brazilian unicorns Nubank and Creditas partner to offer credit products

“The growth and brand acceptance that Nu has achieved in México has exceeded both our expectations and what we have experienced in Brazil. We are already the second-largest issuer of new credit cards in the country and we look forward to continuing on this growth path with the regulatory approval that allows Nu to offer more and better financial products to even more of Mexicans.”

In June, Nubank raised $750 million in a funding round led by Berkshire Hathaway, valuing it at $30 billion. It is this investment that possibly funded the new acquisition of the fintech, which is now allegedly eyeing an IPO in the United States.

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