What happened: Chinese internet giant Tencent has agreed to invest about $200 million in Brazilian fintech startup Nubank in a deal that values the startup at around $4 billion, The Information reported citing a person familiar with the matter. Nubank was valued at $2 billion in March, according to startup tracker CB Insights. That means the company’s valuation doubled over the past six months. Tencent will take a 5% stake in Nubank.
Why it’s important: Chinese tech giants are seeking new opportunities in major emerging markets such as Southeast Asia, India and Latin America. Fintech is rapidly becoming a key investment focus for Chinese tech giants that aspire to push globally. Tencent’s Brazilian investment comes on the heels of another investment in Philippine fintech startup Voyager. News of the deal comes just over a week after Tencent announced plans for a re-organization in its home market of China amid pressure on earnings brought about in part by closer scrutiny of its online gaming business by authorities there.