The Brazilian neobank Nubank announced the acquisition of Olivia, an artificial intelligence (AI) startup that helps users plan their expenses, save money and provides them with the best financial recommendations.
The amount of the transaction was not shared. The acquisition has yet to be approved by the Administrative Council for Economic Defense (CADE), the highest regulatory authority on economic matters in Brazil. Until then, the two companies must operate as independent entities.
A smart growth strategy
Nubank is currently seeking a valuation of up to $ 50.6 billion for its initial public offering. Nubank’s IPO, expected later this year, would be the third-largest on a US exchange in all of 2021.
The acquisition of several companies is a clear growth strategy for this challenger bank. With them, Nubank achieves two main purposes: to strengthen its portfolio of services, products and talent (a process known as acqui-hiring), and to facilitate its entry into more markets in Latin America, especially those with more regulations.
The six companies that it has acquired allow, among other things, that Nubank is more expeditious in its internal audit processes (thanks to Plataformatec technology), offers investment services from the app for its users (with Easynvest functionality) and Now, with Olivia, enable expense planning with recommendations fueled by artificial intelligence.
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