SAO PAULO : Brazilian financial startup Nubank has formed a partnership with SoftBank-backed lending fintech Creditas to offer loans to its clients, according to a joint statement on Monday.
Nubank said it may become a minority shareholder in Creditas with up to a 7.7per cent stake in the fintech in the next two years. The companies did not disclose the deal value.
Recently valued at US$30 billion in an investment round led by Warren Buffett's Berkshire Hathaway Inc, Nubank said it also intends to invest to expand Creditas' credit capacity in Brazil.
Creditas' products and services will be available on Nubank's app in Brazil by the end of this year, the startup said, adding that the move adds to its goal of diversifying its portfolio in the country.
"This partnership allows us to expand our offers even more," Nubank Chief Executive David Vélez said. Currently, Nubank's main product is a purple credit card, free of fees.
(Reporting by Gabriel Araujo, Editing by Louise Heavens and Steve Orlofsky)