Warren Buffett's Berkshire Hathaway Invests $500 Mln In Brazil's Nubank

(RTTNews) – Billionaire investor Warren Buffett’s Berkshire Hathaway(BRK.A, BRK.B) has made a $500 million investment in Nu Pagamentos SA, the parent company of Brazil-based digital bank Nubank.

The bank also said that it raised another $250 million from a group of funds that includes former investors. The funding is an extension of the G Series, held in January of this year. It has raised around $2 billion since it was founded in 2013. The new investments give Nubank a $30 billion valuation, up from $25 billion from previous funding round.

The bank claims to be the world’s largest digital bank by number of customers. The company said it just reached the 40 million mark and, in these first five months of the year, grew at a rate of more than 45,000 new customers per day.

The company plans to use the investment to fund its international expansion to Mexico and Colombia, launch new products and services and hire more employees.

The company had started as a tech company in Brazil that offered only a fee-free credit card with a line of credit of R$50. It now offers a variety of financial products, including a digital bank account, a debit card, insurance, P2P payment via Pix, loans, rewards, life insurance and an account and credit card for small business owners.

“It’s amazing to see everything we’ve been able to do in these eight years of business. No one thought it was possible to change the financial system, but we were always convinced that there was room for disruption and innovation and, more importantly, that customers deserved better services. Nubank has established a new paradigm in the market, which has forced all players to review their processes and products. And as I say, for us at Nubank, it’s still the first day. There’s still a lot to do,” says founder and CEO David Vélez.