Nubank, the Brazilian neobank, just dazzled in its market debut. ✨ Shares of $NU soared 15% intraday, valuing the company at an impressive $45 billion. The IPO will be one of the biggest in the U.S. this year.
Shares of the Brazilian neobank were priced at $9, but opened well above its pricing. So what’s with all the hype??
During the first nine months of 2021, Nubank raked in $1.06 billion and served 48 million customers. In 2018, the bank only had 6 million customers. The neobank’s growth has everything to do with the recent Fintech Boom throughout Latin America — Nubank offers financial services which have traditionally been unavailable throughout the region due to government corruption, organized crime, and other factors.
Co-founder Cristina Junqueira shared:
“In a country like Brazil, where there’s so much pain in accessing financial services, we’re like kids in a candy store. We want [to offer] everything.”
Nubank offers a variety of financial services, like credit cards with non-predatory interest rates and mobile banking services. In a region where almost everyone has a mobile device, but only 30-40% have traditional bank accounts, Nubank has thrived. 🙌
Earlier this year, Nubank became one of the world’s most valuable tech unicorns after it raised a $750 million round with Berkshire Hathaway at a $30 billion valuation. Goldman Sachs analysts anticipate that Brazilian Fintech firms alone will make $24 billion USD per year by 2024, so this is definitely an emerging market to keep an eye on. 🕵️♂️
$NU is up 2.13% in AH.