Nubank is the Brazilian startup company of the moment. Thanks to the success of its Platinum credit card, Nubank has recently received its third round of investments, this time for a total of USD 52 million (about BRL 210 million) of the Founders Fund, run by Peter Thiel.


Apart from the considerable sum of money that has been injected into the company, another special touch in the case of this conquest is the fact that Thiel is the co-founder of the online payments giant PayPal, and that he was one of the first investors to believe that Facebook would work. This is the first time that the Founders Fund has chosen a Brazilian company and a South American company to invest in.


With this new injection of funds, the cash value of Nubank has risen to some USD 500 million (about BRL 2 billion). The other two rounds of investment received by this company were of BRL 90 million in 2015 and USD 14 million (about BRL 56 million) in 2014.


Nubank is a credit card without paper and without fees


The credibility of this new Brazilian startup company has been based on its growing success. So far, about 1 million people have already requested the card while another 300 thousand are waiting to undergo a credit check to put one of them in the wallet – the request may be made on the company website of by recommendation of anyone who is already a client.


This hype is due to the fact that this credit card does not depend on any bank, and also due to the fact that it can be managed with the aid of a mobile telephone, in a quick and transparent manner. The Nubank card does not have any fees or paper invoices, and its rates are highly competitive. This card operates under the MasterCard banner, which is one of those most widely accepted in Brazil.


The company clients are mostly young and have smartphones


This new development has attracted thousands of Brazilians who have grown tired of bank bureaucracy and who have iOS (Apple) or Android smartphones – the number of this type of equipment has really taken off in Brazil, especially among the younger population, up to 30 years old, a segment which is well known for its dissatisfaction in having to fill in lots of forms and paperwork just to gain access to a credit card.


In addition, the company offers only one credit card, Platinum, and only one banner, MasterCard. This means that both the client and the company do not need to waste time (and money) trying to identify which credit card product would be best suited to the person’s financial life. The interest rate is also in a class of its own, up to 7.75% on the unpaid sum and that’s all.


The long wait for credit analysis can easily be explained: greater care in the selection of the clients. As Nubank is a startup and not a bank, they run a much greater risk and for this reason the information about each and every client is carefully checked. Even so, the company is growing at a rate of about 63% a month.