Brazilian digital bank Neon has received a $300m investment from Spanish multinational financial services provider BBVA.
This deal sees BBVA acquire a 21.7% stake in neon. When added to the firm existing position, the company owns 29.7% of Neon. BBVA hopes the deal will give it exposure to retail banking in Brazil.
Neon, which was founded in 2016, has 15 million registered accounts. It provides an alternative to Brazilian banks, with features including ?free checking accounts, debit and credit cards, payroll loans and specialized products for small businesses.
BBVA chairman Carlos Torres Vila said, ?The commitment to innovation is part of BBVA DNA, and digital is opening new ways for us to grow in very attractive markets.
?Neon value proposition connects with the financial needs of Brazilians serving as a platform to continue to grow rapidly in a market with great potential.p>
The firm stated this investment is part of BBVA strategy to enter new markets through investments into digital platforms. BBVA has also invested into UK-based Atom Bank and Germany-based Solarisbank.
BBVA recently entered the Italian market with a 100% digital retail banking platform.
Since Neon was founded, it has raised a total of $423m in equity. Its shareholders include General Altlantic, Vulcan, BlackRock, Paypal and Banco Votorantim.
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