Nubank Acquires Olivia, A Financial AI Startup

Nubank is one of the 100 most influential companies according to Time magazine (TIME 100 Most Influential Companies). They have announced their acquisition of Olivia, a tech and artificial intelligence (AI) startup that helps users plan their expenses and save money.

With this acquisition, Nubank will integrate Olivia’s platform and services into their application as well as merge the two companies’ teams together. The agreement has yet to be approved by the Administrative Council for Economic Defense (CADE) and so, until then, the two companies must operate as independent entities.

Over the course of 2020 and 2021, Nubank acquired six technology and fintech startups: Plataformatec, Cognitect Inc., Easynvest, Spin Pay, Juntos, and now: Olivia.

Nubank is currently seeking a valuation of up to US$50.6 billion in its IPO (initial public offering), which would make it one of the largest companies in Latin America. Nubank’s IPO would be the third-largest on a U.S. exchange in 2021.

Nubank’s interest in Olivia is its Open Finance platform that uses AI to create better experiences and personalized financial recommendations.

Based on its number of users, Nubank is the largest neobank in the world; and is the unicorn with the highest valuation in Latin America. The Nubank IPO is expected to take place before the end of the year.

The Brazilian market has dominated Latin American deals during the first half of 2021, with the country accounting for all but five of the IPOs that hit the market. The strength of the country’s new issuance market reflects the broader rebound in the Brazilian economy in 2021.

The International Monetary Fund (IMF) expects economic growth of 3.7 percent in Brazil this year, followed by a 2.6 percent growth in 2022. That compares with an estimated 4.1 percent decrease over the entire year 2021 (based on JDSUPRA data)