Nubank does not care about devaluation and wants to buy other fintechs

Despite the current scenario of uncertainties and consecutive drops, Nubank wants to buy other fintechs. See more!

Image: Diego Thomazini / Shutterstock.com

Estimated reading time: 4 minutes

Despite the period of decline in its shares, Nubank, a digital bank that is so successful for the banking services offered, does not care about the devaluation and wants to keep the acquisition season active. The company wants to buy other fintechs for 70% lower values.

Last month, fintech shares were in decline on the New York Stock Exchange after quarterly results were released and, in the first six months of the year, the shares lost half their value.

Nubank attracted many eyes at the end of last year with a very elaborate marketing strategy, but the situation of the purple so dear to Brazilians did not remain very well. Now, as the CEO of the digital bank told the Financial Times, fintech wants to take advantage of the devaluation scenario of other companies.

Despite the uncertain scenario, Nubank wants to buy other fintechs

The current scenario has not only affected Nubank. With global venture capital circulating less, investors have stopped investing in big tech companies. From the point of view of David Vélez, CEO of fintech, this is the ideal time for acquisitions, as other startups are also registering declines.

“Some of the merger and acquisition conversations we had 12 months ago are coming back with a 70% discount… We will look to do more mergers and acquisitions,” Vélez said in an interview with the Financial Times.

As a consequence of the recent impacts of the technology market, smaller fintechs are more interested in purchase negotiations due to the difficulty in continuing to operate. According to the director of Nubank, this will enable the survival of the fittest companies.

In this way, the amount charged by these companies should put purple in a privileged position in the payments ecosystem in Brazil and Latin America. It is worth remembering that the founder of Nubank is among the 100 most influential by Time magazine and was even honored by the president of Colombia, Ivan Duque.

Nubank: absurd drop in fintech shares scares investors

On December 9, 2021, Nubank officially entered the Stock Exchange with one of the largest IPOs in history in terms of number of investors. More than 7 million customers have embarked on the fintech offer and accepted a “little piece” in the company’s public offering of shares.

Although Nubank attracted many eyes at the end of last year with a very elaborate marketing strategy, the situation of the purple so dear to Brazilians is not going very well. Fintech shares have already dropped 50% in six months, scaring many investors.

Some factors are cited as justification for the consecutive declines in fintech shares. For financial market analysts and investors, what caused the absurd devaluation of Nubank’s shares involves default, macroeconomics and other issues. To find out more, just click here.

Anyway, want to stay on top of everything that happens in the world of finance?

Then follow us on the YouTube channel and on our social networks such as Facebook, twitter, Twitch and Instagram. Thus, you will follow everything about digital banks, credit cards, loans, fintechs and matters related to the world of finance.

Image: Diego Thomazini / Shutterstock.com

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

Check Also

Income Tax 2022: second batch of refund is paid today; see if it’s your turn

The Federal Revenue will deposit, this Thursday (30), the payments related to the second batch …