Brazil’s Nubank celebrates tenth anniversary
Brazilian fintech startup Nubank this month celebrates 10 years since it was founded.
The company is one of Brazil’s most successful corporates ever recorded. Quarter 1 revenues were recorded at US $1.6 billion, doubling its performance over last year.
Nubank launched in 2013 in S?o Paulo, Brazil, a country whose banking system has been known for its high fees and low-tech approach. Today half of the adult population in Brazil use Nubank;s services that are supported by an expanding set of AI-driven products and services.
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CEO David Velez says these products will help propel the company into its second decade, as it transforms into a money platform that serves individual and business customers by connecting them with financial and non-financial service. According to media sources the company wants to move away from being referred to as a ‘neobank’.
The company went public in 2021. Warren Buffett was among its first backers and majority shareholders
The Brazilian user base, which represents 95 percent of the company’s total, is seen as a giant launching pad for Nu’s long-term goals—starting with the underwriting credit line Nubank beta-launched in April targeting federal civil servants. The idea is to gradually unroll this service to pensioners and the general population, while reducing the bank’s exposure to its main lending product today, which is credit cards.
It’s a BRL 500 billion market, with social security beneficiaries accounting for 31 percent of the payroll loans. So we don’t need to go further into portfolio expansion to tap into this huge market,” Guilherme Lago who joined the fintech bank in 2019 as a finance director and was appointed CFO in 2021.
Share Price
Nu Holdings (NU) is trading at US $6.79 (-1.74 percent).
Equity Research Analysts are recommending the company as a good investment.
Background
Nu Holdings Ltd. is a holding company that engages in the provsion of digital banking and fintech services. The company was founded by David Vélez Osorno,?Cristina Helena Zingaretti Junqueira, and?Adam Edward Wible?in 2016. It is headquartered in George Town,?Cayman Islands.
Founder and Chairman David Vélez?founded Nubank in 2013. He was senior partner at Sequoia Capital between January 2011 and March 2013, in charge of the firm’s Latin American investments group. Before Sequoia, Vélez worked in investment banking and growth equity at?Goldman Sachs,?Morgan Stanley?and?General Atlantic. He holds a Bachelor’s of Science Degree in Management Science and Engineering and a Master’s in Business Administration, both from Stanford University.
Related topics:
Brazil’s success story: Nubank reports impressive first quarter 2023 (www.gns-italia.com)
