Spanish bank BBVA has invested $300 million in Brazilian digital bank Neon, taking its total stake to 29.7%.
The banking group has held a stake in Neon through its venture capital fund Propel since 2018, and with this latest investment acquired a further 21.7% stake.
Neon, which was founded in 2016, has 15 million registered accounts.
It has raised $423 million from investors through several financing rounds and counts General Atlantic, Vulcan, BlackRock, Paypal and Banco Votorantim among its shareholders.
Following the new investment from BBVA, founder and CEO Pedro Conrade and executive managing partner Jean Sigrist will continue to lead Neon.
“BBVA’s investment and global expertise will allow Neon to offer loans in a more simple, sustainable and inclusive way.
“We want to reach more Brazilians, contributing to reducing inequalities and making a difference in their lives. Neon will continue to grow rapidly, while delivering on its purpose,” said Conrade.
BBVA said that the investment will allow it to gain exposure to Brazil’s retail banking market, having already invested in Atom Bank in the UK and Germany’s Solarisbank.
BBVA chairman Carlos Torres Vila added: “Neon’s value proposition connects with the financial needs of Brazilians serving as a platform to continue to grow rapidly in a market with great potential.”