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Nubank Continues Rapid expansion Across Latin America, Eyes $100 Billion Valuation
nubank, the digital financial services platform founded in 2013, is aggressively expanding its footprint across Latin America, demonstrating extraordinary growth and solidifying its position as a major regional player. The company currently boasts a market value exceeding $6 billion, with projections from Morgan Stanley suggesting it could surpass $100 billion by the end of 2026.
Nubank attributes its success to a buisness model focused on efficiency and scalability, offering low-cost services while concurrently increasing revenue. Recent financial results for the second quarter of this year underscore this strategy. The company added 4.1 million new customers, bringing its total base to nearly 123 million, with an impressive 83% active user rate.
Revenue for the quarter reached $3.7 billion, representing an 85% annualized growth rate since 2021. This surge in revenue translated to a nearly threefold increase in net income, climbing to $637 million compared to $487 million in the same period last year. Nubank’s leadership asserts this performance “consolidates [its] position as one of the world’s largest and fastest-growing financial services platforms.”
The company is particularly dominant in Brazil, where it ranks as the third-largest financial institution by customer count, according to the country’s Central Bank. Nubank’s gross profit for the second quarter reached $1.55 billion, a 14% increase quarter-over-quarter and a 24% increase year-over-year.
Key financial indicators demonstrate continued momentum.Total deposits grew 41% year-over-year to $36.6 billion, while credit card and loan portfolios expanded by 40% in foreign currency terms and 8% quarter-over-quarter, reaching $27.3 billion.
Geographically, Nubank’s customer base is heavily concentrated in Brazil, with 107.3 million users representing over 60% of the country’s adult population. Deposits in Brazil total $27.8 billion.
Beyond Brazil, nubank is making significant inroads in other Latin American markets. In Mexico, the platform has attracted 12 million customers, approximately 13% of the adult population, with $6.7 billion in deposits. Colombia boasts 3.4 million Nubank clients, representing 10% of the adult population, and a remarkable 841% year-over-year increase in deposits, reaching $2.1 billion.
The company’s active credit client base has grown to 55 million, an 11% increase.Credit card usage is also expanding rapidly, with 6.6 million cards issued in Mexico and 1.4 million in colombia.
Nubank highlights its ability to build a scalable deposit base across Latin America, with total deposits reaching $36.6 billion this quarter, a 41% year-over-year increase.
Note: attempts to reach representatives from Nubank and its communications agency for comment on specific inquiries were unsuccessful as of the time of publication.
