Chinese technology giant Tencent has invested in Uala, a financial management mobile app developed in Argentina.
The investment would offer Tencent a stake in the Argentine start-up.
Financial terms of the transaction were not revealed.
However, Reuters said that the funding will significantly increase the valuation of the Argentine firm.
Uala founder Pierpaolo Barbieri said that the fresh infusion will support the app’s development.
“The idea is that it’s not just money. It’s about learning from their experience in China and in other Asian markets to inform our Latin America strategy,” Barbieri was quoted as saying by Reuters.
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Uala is also backed by billionaires George Soros and Steve Cohen as well as investment bank Goldman Sachs.
With Uala, users can make payments and money transfers with Mastercard prepaid cards.
According to Bloomberg, the mobile app intends to commence lending this year.
“Tencent invests because it’s betting on what will happen in Argentina over the next 10 years, rather than what will happen in the next six months,” Barbieri was quoted as saying by Bloomberg.
The latest investment strengthens Tencent’s foothold in the Latin American fintech space.
Last October, Tencent invested $180m in Brazilian fintech startup Nubank.
The Chinese firm secured a minority stake in Nubank in lieu of the investment.