AMINA HUSSAINI, Abuja
The world is revving up digitally with the increasing growth of unicorns as Nubank, a Brazilian fintech and unicorn has acquired US software firm Cognitect, known for creating two programming systems: Clojure and Datomic.
Nubank and Cognitect have been partnering since 2014 when the digital bank was developing its first product and the acquisition may have just sealed up a new way to go in the digital space.
Nubank, in a statement on its website notes, “ With this acquisition, being the second, having acquired the Brazilian consulting firm Plataformatec earlier this year, the neobank expects to strengthen its software engineering team which will play a fundamental role in the growth and scalability of its products and overall business.
The acquisition confirms the growth of unicorns which has risen from less than 40 in 2013 to almost 400 in July 2020. Data published by AksjeBloggen.com Monday noted the impressive growth of these private companies with a market valuation of over one billion dollars has attracted an increasing number of venture capitalists who are willing to invest in their business. The attraction in these unicorns led to $26.5 billion in new money raised by operators in this sector between January and July this year.
Chief Executive Officer Nubank, David Velez said “By joining forces and combining Cognitect’s technical experience with Nubank’s scale and reach, there is no doubt we will be able to free even more people from the complexity of financial services across Latin America.”
“From their start in 2013, Nubank has grown to 600 Clojure developers, running 2.5 million lines of Clojure code in 500 microservices on over 2000 Datomic servers. Cognitect has been there every step of the way, helping Nubank’s developers translate Clojure’s ideas into business agility,” founders Stuart Halloway, Justin Gehtland, and Rich Hickey wrote in a company blog post.
With over 25 million customers in Latin America, Nubank with offices in Brazil, Mexico, Argentina and Germany, is the world’s largest independent digital bank and recently became the world’s first and only company with a female founder (Cristina Junqueira) to reach a valuation +$10 billion.
The Covid-19 pandemic that shuttered businesses, spurred the growth of the market as more people transacted online owing to the lockdown that kept the entire world indoors.
In 2016, unicorns all over the world raised $29.8bn in funding rounds, with the cumulative value of investments reaching $61.8bn that year, revealed the CrunchBase data. During the next twelve months, billion-dollar startups raised another $47.3bn, with the total value of investments jumping to $109.1bn by the end of 2017.
Statistics show that 2018 witnessed the most significant increase in the total value of raised funds, with the amount reaching $192.3bn, an $83.2 jump year-on-year. New $74.8bn worth funding rounds continued in 2019, with the cumulative amount of unicorn investments reaching $267.1 bn in the fourth quarter of last year.
The first quarter of 2020 delivered $13.8bn worth investments into billion-dollar startups. This value slipped to $9.6bn in the second quarter of 2020, almost 40 percent drop year-on-year. Nevertheless, statistics show the cumulative funding amount surged by 310% in the last three years.
Asian unicorns lead in value of raised funds, with $163.4bn in total funding amount. The US companies follow with $110.5bn worth of investments. Statistics indicate the two regions together account for 94 percent of all investments into unicorn companies.
Statistics according to publication on AksjenBloggen.com show internet unicorns lead in the total value of raised funds, with $86.1bn worth investments as of July. Fintech represents the second-leading industry with $58.2bn worth funding rounds. Ecommerce, software, and financial services follow at $53.8bn, $43.7bn, and $42.8bn, respectively.