Nubank: key data about financial and digital growth

Nubank is a fast-growing company.

Nubank’s Initial Public Offering (IPO), scheduled for early 2022, is just around the corner and in preparation for this important step the company has filed its Registration Statement with the US Securities and Exchange Commission (SEC). This is a document of over 300 pages that presents, among other information, the company’s performance up to 30 September 2021. It also presents updated information about the IPO. 

This financial data demonstrates Nubank’s strong growth: the number of customers has increased by 702% over the last three years with a Compound Annual Growth Rate of 100%. And to date there are 48 million customers, 72% of which are active, i.e. people who have generated revenue in the last 30 days.

As a result of customers growth, also the number of transactions through debit and credit cards increased. The total value of these transactions, which have increased by 97% in the last 12 months, is nearly $30 billion.

Nubank’s success is based on its ability to meet the typical needs of younger consumers who are digital and smart. This is why the Nubanker is mostly a person between 18 and 34 years old: 59% of Nubankers are in this age bracket while the same target drops to 30% for traditional banks.


Data on digital success: the NuCommunity

This closeness to people’s needs helped Nubank to create one of the largest communities of people that other neobanks have never experienced. Infact, among all its competitors, Nubank ranks first in the number of followers on LinkedIn, Instagram and YouTube: three of the most significant social networks in use today. Adding the followers of the other social pages, the number of total followers reaches 9,8 million. Revolut does not exceed 2 million and N26 does not even reach 1 million (data collected by PXR Italy based on HypeAuditor). 

All this is reflected in a great traffic on Nubank website, which reached the peak of 10 million users in July 2021 – when Warren Buffett invested in the company – and in a great number of downloads that in October exceeded 4 million (data collected by PXR Italy based on SemRush and Crunchbase). 

There is no need to say, the market likes Nubank and data proves it: it is not a coincidence that the app Nubank Count and Cartão has the highest rating among all competitors with 4.7 stars out of 5 on Google Store and 4.8 on Apple Store.


On the way to the IPO

In addition to this positive digital data, Nubank will present itself at the IPO with a financial background characterized by growing trends. The numbers are significant: total revenue has doubled in the last year and now exceeds $1 billion, and total assets have increased by 47% to almost $15 billion. Financial ratios such as Return on Equity (ROE) and Return on Assets (ROA) are also increasing: +1% and 34% respectively from 2020. 

With these figures, now everything is ready for the initial public offering. And you, are you ready? 

Read more in our article Nubank: all you need to know about 2022 IPO. 




Nubank’s IPO: All you need to know

Nubank’s IPO is scheduled for early 2022: the company, which has been valuated $30 billion after the last deal in July 2021, is confident about the next big financial step. In the last round, the bank had a pre-money valuation of $28,9 billion but closed with a post-valuation of 3,8% higher than pre-money. Furthermore, during this round, the company raised $1,15 billion.

This one was the 12th deal Nubank has been involved in: there have been 12 deals since 2013 and the bank has raised almost $2,5bn. Its post-money valuation from 2016 to date has increased by 5.896%, an eye-popping percentage. 

This growth, besides being a consequence of the company’s financial success, is also justified by the strongly growing industry: consider that in 2021, Fintech VC exit activity reached a value of $148,6 billion with a CAGR of 65% over the last ten years (Pitchbook Emerging Tech Report: Fintech, 2021).  This bodes well for the success of the upcoming IPO.


The features of the public offering

The company is targeting a valuation of $50bn (+67% than last post-money valuation at $30B) in its listing on the New York Stock Exchange (NYSE). If so, it would have a higher value than Itaú Unibanco ($38,4M), which is the largest bank in Brazil in terms of total assets ($407B, S&P Global Market Intelligence 2016). 

The initial offering consists of an international offering and a concurrent Brazilian offering. In both offerings, Class A shares will be issued but, in the Brazilian offering, they will take the form of Brazilian certificates of deposits (BDRs). BDRs represent one-sixth of each Class A common share and will also be used to reward the trust and loyalty of the customers, the NuCommunity: each customer who wishes to participate in the initiative will receive sufficient funds for the subscription and payment of one BDR. This is an initiative to involve the community as much as possible in Nubank’s financial growth plan. 

The total number of Class A Common shares offered is 289 million and the average offering price is expected to be between $10 and $11 per share: with these numbers Nubank aims to achieve $2,95 billion of net proceeds. The stock split ratio is 6:1, meaning that existing shareholders will have x6 their current number of shares (therefore each share that is now worth $60-66 will be worth $10-11). In addition, there is the over-allotment option: if exercised by the underwriters, there will be an extra of 43 million Class A shares offered by the selling shareholders for a total expected offering amount of $3,49 billion.

At the end of the IPO, there will be 4,6 billion outstanding shares, including both class A (3,45Bn) and class B (1,15Bn) shares. Class B shares will not be issued in the public offering and differ from Class A shares in the following ways:

– Class B shares are worth 20 votes per share.

– Class A shares are worth 1 vote per share.

Because of this difference, immediately after the completion of this offering, Founder David Vélez Osorno will own 86,2% of Class B ordinary shares, representing 75% of the voting power of Nubank’s outstanding share capital. 

Now that you know everything about the upcoming IPO, discover more about Nubank’s success in our article Nubank: key data about financial and digital growth.