The investment bank first made a bet on C6 in June 2021 when it bought its initial stake.
JPMorgan Chase & Co (NYSE: JPM) has added to its equity stake in Brazilian digital bank C6, bringing it from 40% to 46%. Per a Reuters report, the update was shared in a joint statement by both banks on Tuesday. However, the financial terms of the transaction were not disclosed.
‘Investment Aligns with Our Global Strategy,’ JPMorgan Affirms
JPMorgan’s reinvestment in C6 Bank might be a testament to the fact that it believes they both share common goals. Besides, it serves the interests of both banks, just as the previous agreement has proved over time.
The investment bank first made a bet on C6 in June 2021 when it bought its initial stake. Since then, C6 itself has gone on to experience significant growth, bringing its client base to an impressive 25 million. That is from the 8 million customers it had before the initial investment.
Within the short period, C6 Bank has floated several new products that are in tandem with the ever-changing customer needs. And now, the bank boasts a credit portfolio increase of over 320% to reach 40 billion reais ($8.2 billion) from 9.5 billion when JPMorgan came on board in 2021.
Another area of interest is the valuation of C6 Bank. Though it was not announced in the 2021 agreement, the closest estimation would be the December 2020 valuation of 11.3 billion reais. And, given that this valuation took place six months before the JPMorgan deal, it might be safe to say that the valuation has now grown significantly.
Meanwhile, the reason for buying more stake in C6 Bank is simple, according to the CEO of JPMorgan’s international consumer banking division, Sanoke Viswanathan. He says that JPMorgan ultimately seeks to broaden its influence and expand its presence in the digital banking sector.
Without a doubt, C6 Bank’s partnership with JPMorgan has improved its reputation. But more importantly, it has also positioned it for further growth as it continues its climb to success.
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this.
He’s a reader, a researcher, an astute speaker, and also a budding entrepreneur.
Away from crypto however, Mayowa’s fancied distractions include soccer or discussing world politics.
