Brazil’s digital bank Nubank is reportedly eyeing a $55.4bn valuation ahead of its initial public offering (IPO), as Brazilians look beyond traditional lenders.
If Brazil’s most prominent digital bank is listed at a market cap greater than its largest tradition bank Itau Unibanco, Nubank would shoot up the ranks towards international high flyers like the recently listed Robinhood which bagged a valuation of $32bn.
The IPO, on trajectory for the US market, will follow the fintech firm’s latest funding round in June – led by billionaire Warren Buffett’s Berkshire Hathaway, Reuters reported.
The Buffett-backed capital rally hoisted Nubank to a $30bn valuation, after a $1.15bn total funding round, meaning the firm’s value would have swelled by some $25bn in just two months.
Nubank, which now reaches 40m customers in Brazil, also caught the eye of Chinese technology giant Tencent in 2019, when it acted as a key investor in its $400m Series F fundraiser in the July before the pandemic.
The digital bank, formerly known as Nu Pagamentos, is the seventh most valuable unicorn worldwide, behind fellow fintech heavyweights Stripe, Klarna and Revolut, according to a ranking by CBInsights,
Morgan Stanley, Goldman Sachs and Citigroup are helping lead the bank’s US IPO.
City A.M. has contacted Nubank for comment.