(Provides a purpose for partnership, industries during which they plan to take a position)
Writer: Carolina Mandl
SAO PAULO, Nov. 1 (Reuters) – Brazilian fintech Nubank and enterprise capital agency Sequoia Capital are teaming up for future investments in Latin American startups, two sources accustomed to the state of affairs stated Monday.
Finest recognized for its purple, commission-free bank cards, Nubank, backed by Sequoia since 2013, has determined with it to spend money on startups in sectors that may transcend monetary companies comparable to shopper web and enterprise software program, each sources added. …
In its preliminary public providing prospectus launched on Monday, Nubank stated it’s contemplating investing in sectors comparable to healthcare, e-commerce and telecommunications, however didn’t disclose its partnership with Sequoia.
Nubank, which stated it’s concentrating on greater than $ 50 billion in valuation, additionally stated within the doc that it intends to problem current enterprise fashions in these sectors.
The transfer by the 2 corporations comes amid a growth in enterprise capital offers within the area as Latin America has created a dozen high-yielding startups. In line with CB Insights, funding rounds soared to $ 14.8 billion within the first 9 months of this 12 months, practically triple the quantity for all of 2020.
Sequoia has made simply half a dozen investments in Latin America, together with Nubank and the supply app Rappi, but it surely plans to extend its funding within the area, Sonia Huang, a accomplice on the enterprise capital agency, informed Reuters in a latest interview.
For the enterprise capital agency, the settlement provides a accomplice with a presence in 4 nations within the area – Brazil, Mexico, Argentina and Colombia – and expertise in enterprise growth, sources stated. For Nubank, he provides a accomplice with international startup investing expertise.
Paulo Barbosa, a former vice chairman of Singapore-based GIC, will spearhead Nubank’s enterprise capital penetration, whereas Sequoia companions Huang and Stephanie Zhang will likely be held accountable for his efforts within the area, sources stated.
Sources don’t disclose the quantity they plan to spend money on the area, or how they’ll cut up the funding rounds. Beneath the phrases of the settlement, each corporations can even spend money on startups individually.
In August, Nubank and Sequoia teamed up in a $ 44 million funding spherical for India’s digital financial institution Jupiter with Matrix Companions.
One supply stated Sequoia and Nubank have additionally checked out numerous digital banking funding alternatives in different rising markets for co-investment.
Sequoia and Nubank declined to remark. (Reporting by Caroline Mandle; enhancing by Ian Harvey and Steve Orlofsky)