Chinese conglomerate Tencent has invested $180m in Brazilian fintech startup Nubank to support its plan to develop a personal finance platform.
The investment gives Tencent an undisclosed minority stake in the Nubank.
Nubank chief executive David Velez told Reuters that Tencent will invest $90m directly, while the remainder will be paid by purchasing company stakes from current Nubank shareholders.
The investment comes when Nubank is planning to launch consumer loan service by the end of this year.
In January, the company secured central bank’s approval to provide loans to the customers.
Currently, Nubank’s offerings are limited to credit card issuance and digital payment accounts to enable money transfers and bill payments.
Since its establishment in 2013, Nubank has issued around 5 million credit cards and opened 2.5 million digital payment accounts.
The company raised $150m in its last financing round in March, which was led by venture capital firm DST Global Investment Partners.
Founders Fund, Redpoint Ventures, Ribbit Capital LP and QED also participated in the funding.
Till now, Nubank has raised $330m through six funding rounds.
Velez told the news agency that the company does not need additional funding this year.
The Tencent investment is expected to help Nubank to advance with the development of payments, consumer loans and machine learning capabilities.