Nubank is a neobank like no other 🤯; dLocal - LatAm’s FinTech gem you absolutely cannot ignore 🤑
FinTech is Eating the World, 17 August
Hey Everyone,
Happy Thursday! Today’s issue is a special one as it is dedicated to Latin American FinTechs. We’re therefore going to look at Nubank, which is a neobank like no other (analysis of their latest performance & why you should be excited + some bonus reads), and dLocal, which is LatAm’s FinTech gem you cannot ignore (what’s up with their sale + analysis of their ridiculous numbers & why I’m long on their stock). So let’s jump straight into the fascinating stuff 🌶
Nubank is a neobank like no other 🤯
Note: the first version of this post originally was published on LinkedIn but given the immense impact and interest, I’m sharing a more detailed version here too.
Earnings called ☎️ Brazil's FinTech giant Nubank NU 0.00%↑ just posted its latest earnings. They literally crushed them!
In fact, we have never seen growth like NU's in any challenger bank ever before.
Let’s take a closer look.
More on this 👉 Here are the key highlights from Nubanks 2Q 2023:
👥 83.7 million customers (+28% Year-over-Year)
🇧🇷 50% of the adult population of Brazil now uses Nubank
🇧🇷 It's now the 4th largest financial institution in the country, behind only Itaú, Bradesco, and Caixa.
💰 $18 billion worth of deposits (+35% YoY). Speaks volumes about what Apple AAPL 0.00%↑ can achieve in the long run. ICYMI: Apple now runs one of the largest neobanks in the world 🤯
💸 $1.9 billion in revenues (+60% YoY)
🤑 $224.9 million in profit (they lost $29.9M in Q2 2022). Just look at how steady and predictable their growth is:
What's even more impressive is that their average customer is now using nearly 4 products 😳
Cross-selling is how you generate high LTVs per customer in FinTech, and NU is cross-selling multiple products like a champ. It's what every consumer FinTech and bank exec dreams of.
And for Nubank this is business as usual.
So, in addition to 37 million credit cards and ~60 million bank accounts, NU now has:
💳 6.7 million personal loans
🛡 1.1 million insurance policies
📈 10.4 million investment customers
📊 1.3 million NuCripto customers
In other words, it’s the ultimate Super App of LatAm.
This is why I earlier said that Revolut doesn’t have a chance in LatAm. Não chance!
ICYMI: Doomed to fail? Revolut goes live in Brazil 🇧🇷 [+2 more bonus reads]
✈️ THE TAKEAWAY
Looking ahead 👀 Nubank’s latest earnings is a testament to the scale and influence the Brazilian FinTech giant has across Latin America. But if the above results aren’t impressive enough, we must also remember that a few months ago Nu partnered with Uber UBER 0.00%↑. This is yet another move to further strengthen Nubank’s ecosystem - by expanding their services outside of Nu’s Super App ecosystem the Brazilian FinTech giant is basically building the Apple of Finance for LatAm. Looking at the big picture, it's incredible to be seeing this level of growth in a 10-year-old company while maintaining profitability. Now, more than ever before, is clear that Nubank is not only the strongest neobank in the world. It's the best-run digital bank ever. I’m now even more bullish on them.
ICYMI: The future is purple. Nubank Purple 💜 [a deeper dive into Nu + some more bonus reads]
Disclaimer: this isn’t investment advice and I’m a shareholder of Nu.
P.S.