The Spanish financial services firm, BBVA announced today that the company has reached an agreement to invest approximately 263 million euros ($300 million) in the Brazilian digital bank, Neon.

With fresh investment, BBVA will acquire a 21.7% stake in Neon. Through its venture capital fund Propel, BBVA has already held a stake in Neon since 2018. After the completion of the newly announced transaction, BBVA’s stake in Neon will reach 29.7%.

Additionally, BBVA highlighted the company’s strategy to enter new regions through investments in technology-driven digital platforms. With a population of over 210 million and a massive market, Brazil is the largest economy in Latin America.

“The commitment to innovation is part of BBVA’s DNA, and digital is opening new ways for us to grow in very attractive markets,” BBVA's Chairman, Carlos Torres Vila said. “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.”

In October last year, BBVA announced the launch of a 100% digital offering in Italy.

Neon

Founded in 2016, Neon offers digital financial services. Prior to the investment from BBVA, Neon raised a total of $423 million in different funding rounds from some of the world’s prominent investors. The shareholders of Neon include General Atlantic, Vulcan, BlackRock, Paypal and Banco Votorantim.

"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,” the Founder of Neon, Pedro Conrade said in the press release.

BBVA posted strong financial results for the first 9 months of 2021. The Net Attributable Profit between January and September 2021 reached €3.31 billion.

The Spanish financial services firm, BBVA announced today that the company has reached an agreement to invest approximately 263 million euros ($300 million) in the Brazilian digital bank, Neon.

With fresh investment, BBVA will acquire a 21.7% stake in Neon. Through its venture capital fund Propel, BBVA has already held a stake in Neon since 2018. After the completion of the newly announced transaction, BBVA’s stake in Neon will reach 29.7%.

Additionally, BBVA highlighted the company’s strategy to enter new regions through investments in technology-driven digital platforms. With a population of over 210 million and a massive market, Brazil is the largest economy in Latin America.

“The commitment to innovation is part of BBVA’s DNA, and digital is opening new ways for us to grow in very attractive markets,” BBVA's Chairman, Carlos Torres Vila said. “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.”

In October last year, BBVA announced the launch of a 100% digital offering in Italy.

Neon

Founded in 2016, Neon offers digital financial services. Prior to the investment from BBVA, Neon raised a total of $423 million in different funding rounds from some of the world’s prominent investors. The shareholders of Neon include General Atlantic, Vulcan, BlackRock, Paypal and Banco Votorantim.

"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,” the Founder of Neon, Pedro Conrade said in the press release.

BBVA posted strong financial results for the first 9 months of 2021. The Net Attributable Profit between January and September 2021 reached €3.31 billion.