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Warren Buffett's investment firm Berkshire invests $500 million in Nubank

With the extensions, Nubank's Series G rises to $1.15 billion and lifts the fintech's valuation at $30 billion

David Vélez, founder and CEO of Nubank.
David Vélez, founder and CEO of Nubank. Photo: Nubank/Courtesy
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  • The round makes Berkshire the largest shareholder in Nubank;
  • Nubank also announced a second round add-on with a $250 million Sands Capital-led round;
  • According to Nubank, its Series G becomes the all-time largest investment round raised by a private technology company in Latin America.

Everybody wants a piece of Nubank. Latin America‘s largest fintech announced on Tuesday that billionaire Warren Buffett‘s investment firm, Berkshire Hathaway, has bought a $500 million stake in Nubank, capital that will be invested to expand Nubank’s Latin America footprint.

“First, it will help further expand the product offering by introducing new solutions to the portfolio, but also by maintaining the pace of accelerated growth in terms of market penetration, for example in the investment sector,” Nubank said in a press release.

Nubank is Warren Buffett’s second bet on a Brazilian financial startup. His Berkshire Hathaway also acquired a stake in payments company StoneCo almost three years ago, when it went public.

A highly concentrated financial market dominated by five banks, Brazil has been a hotbed for fintech growth. Online banking has reduced costs for newcomers and the central bank has created new rules to encourage competition, aiming at lower fees and interest rates for consumers.

READ ALSO: Nubank: Brazil’s biggest fintech has everything to shake up Latin America as whole

The proceeds will also be directed to the company’s international expansion and should help Nubank continue to attract global talent.

The funding is an extension of the Series G raised in January of this year, and according to a Wall Street Journal report on Tuesday will make Berkshire the largest shareholder in Nubank, valuing the neobank at $30 billion.

Nubank also announced a second following of the round with a $250 million round, led by Sands Capital with participation from Brazilian investors such as Absoluto Partners and Verde Asset Management. Also participating were the Canada Pension Plan Investment Board (CPP Investments), MSA Capital, and Sunley House Capital (an arm of Advent International).

READ ALSO: Nubank announces first steps towards integration with Easynvest and Arturo Nuñez as new CMO

Some of the current investors, such as Invesco, Tarsadia Capital, and Tencent, participated in the round, according to Nubank.

“With the two extensions, the Series G amount is lifted for $1.15 billion and becomes the all-time largest investment round raised by a private technology company in Latin America,” it said.

In all, Nubank has raised about $2 billion over its history and has over 40 million customers.

READ ALSO: Nubank gets Central Bank authorization to buy Easynvest

The fintech‘s next step is a US IPO, and the company is working for this. In May 2021, Nubank appointed four new board members, including Jacqueline Reses (board member of the Federal Reserve of San Francisco) and Luis Alberto Moreno (former president of the Inter-American Development Bank – IDB between 2005 and 2010).

The company does not disclose the size of the stake of any of its investors. Recall the rounds so far:

  • Seed: $2 million in June 2013. Investors: Sequoia Capital and Kaszek Ventures
  • Series A: $15 million in August 2014. Investors: Sequoia Capital and Kaszek Ventures
  • Series B: $30 million in May 2015. Investors: Tiger Global Management, Sequoia Capital, Kaszek Ventures, QED Investors.
  • Series C: $52 million in January 2016. Investors: Founders Fund, Tiger Global Management, Sequoia Capital, Kaszek Ventures.
  • Series D: $80 million in December 2016. Investors: DST Global, Sequoia Capital, Founders Fund, Tiger Global Management.
  • Series E: $150 million in February 2018. Investors: DST Global, QED Investors, Redpoint Ventures, Ribbit Capital, Dragoneer Investment Group, Thrive Capital.
  • Tencent: $180 million in October 2018.
  • Series F: $400 million. Investors: TCV, Tencent, DST Global, Sequoia Capital, Dragoneer, Ribbit Capital, and Thrive Capital.
  • Series G: $400 million: Investors: GIC, Whale Rock, Invesco, Sequoia, Tencent, Dragoneer, and Ribbit.
  • Series G (extension): $500 million: Berkshire Hathaway.
  • Series G (extension 2): $250 million: Absolute Partners, Verde Asset, Sands Capital, Sunley House (an Advent International affiliate), MSA Capital, Canadian Pension Plan Investment Board (CPPIB), Tencent, Invesco, Tarsadia Capital.
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