Nubank has seen rapid growth in the last year for its digital banking platform. The company says it welcomes on average 2.1 million new customers per month, average for Q3, 2021.
Brazil’s Nubank raised $2.6 billion in a New York Stock Exchange initial public offering that values the digital lender at more than $40 billion. Nubank priced 289 million shares at $9 apiece on Wednesday .
Shares of Brazilian fintech company Nubank closed up nearly 15% in its market debut Thursday on the New York Stock Exchange, going public under the ticker symbol “NU.” Shares closed at $10.33, giving the company a market cap of close to $50 billion in one of this year’s largest IPOs, according to CNBC.
Launched in 2013, Nubank has now around 48 million customers in Brazil, Mexico and Colombia, Nubank. From a core credit card product, the firm now offers personal lending, life insurance, products for micro entrepreneurs, instant payment services, and investment products.
“The pandemic, in a way, forced that behavior to change among most of the population, because branches were closed and it wasn’t even an option,” he said Nubank CEO and co-founder David Vélez said Thursday on CNBC.
“People started trying us and realized we were a better option — we charge no fees, better customer experience all in your smartphone, then suddenly we started seeing people in their 60s, in their 70s, in their 80s, people all across Brazil, in different municipalities, start using us.”
“We don’t think the banking branch will survive the way it is,” Vélez said. “It is too costly to serve the majority of users, especially in emerging markets [like Latin America] where you have a very high cost of operations, so a lot of that physical infrastructure will probably disappear … most of the providers of financial services 5-10 years from now will be digital companies that will be focusing on the customer, will have a lot of efficiency, and be decreasing fees and interest rates for everybody.”
Nubank’s revenues doubled year on year to $1.1bn in the first nine months of 2021, but net losses also widened from $64.4m to $99.1m.
According to Financial Times, Vélez said the company’s core Brazilian business was already profitable but declined to name a target date for the wider group to break even, saying it would “continue to reinvest in growth as long as profitable growth is available to us”.
The Colombia-born chief said there were no current plans to enter more countries.
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below: