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Japan's Softbank Mulls Investment In Brazil's Nubank

softbank jun07 lt

Japanese conglomerate Softbank Group Corp is engaged in talks to make investment in Brazil-based financial technology company Nu Pagamentos SA or Nubank, Recode reported. Softbank may invest up to $1 billion in Nubank.

The negotiations for the funding from a new Latin American fund controlled by SoftBank are said to be in the initial stage, and the companies are yet to determine the final values.

Nubank, which was founded in 2013, is currently considered to be the most valuable startup in Latin America. Softbank's investment will reportedly take its valuation up to $10 billion.

The digital bank has already received $400 million in seven financing rounds.

Nubank said that it is always considering opportunities to raise new fundings.

The latest investment is expected to help the company in its plans to expand outside Brazil to other Latin American countries. Nubank already announced its plans to initiate operations in Mexico. The company currently has around 8.5 million customers in its home country.

Softbank, which is on an investment spree, has recently launched a $5 billion technology fund to invest in startups in Latin America. With the fund, the company plans to focus on e-commerce, digital financial services, and health care, among others.

Through its $100 billion Vision Fund, the Japanese company, headed by Masayoshi Son, currently has investments in major start-ups around the world including Uber Technologies Inc., WeWork Cos. and Didi Chuxing.

Softbank in early April had signed a binding term sheet with Germany's Wirecard AG to invest approximately 900 million euros through convertible bonds.

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