Nubank nets financial services designation in Mexico

Brazilian financial startup Nubank published a statement on Tuesday announcing the acquisition of Sociedad Financiera Popular in Mexico. 

This deal will avail Nubank of an operating license that will make it possible for the firm to launch new products and solutions in Latin America’s second-largest economy.

With the new license and designation, Nubank’s Mexican subsidiary Nu Mexico will be legally allowed to offer new services, once the firm receives final approval from Mexico’s National Banking and Securities Commission (CNBV).

“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 Mexico in a sustainable, orderly and responsible manner,” Emilio Gonzalez, general manager of Nu Mexico, said in the statement.

Launched in 2013, Nubank recently hit a US$30 billion valuation in an investment round led by Warren Buffett’s Berkshire Hathaway Inc.

The firm has now set a new target, which is to reach US$55 billion through its planned U.S. initial public offering.