Buffett-Backed Nubank Tests Latin America Tech Fever in IPO
- Other firms may follow path of biggest unicorn in the region
- Amount raised among private investors triples to $14 billion
David Velez, founder and chief executive officer of Nubank, left, speaks while holding a credit card as Cristina Junqueira, co-founder and vice president of branding and business development at NuBank, listens during an interview in Sao Paulo, Brazil, on Thursday, Feb. 7, 2019.
Photographer: Rodrigo Capote/BloombergVenture capitalists are pouring money into Latin America’s startups like never before, minting new regional giants but raising questions about whether soaring valuations can hold as regional economies slow.
A major test is coming: Brazilian digital bank Nu Holdings, the biggest unicorn in the region, is planning an initial public offering next month, when it will seek to top the $25 billion valuation it achieved in January. But challenges are adding up, with a recent global rout in technology stocks leading Nubank, as the company is known, to consider reducing its valuation ambitions on the transaction, Bloomberg News reported on Monday.