Reddit - Dive into something

$NU : Nu Holdings Ltd. is a number one digital monetary companies platform working primarily in Latin America, providing a complete suite of modern banking options throughout a number of international locations.

Present Worth = $11.41, MC = 54B

Gone are the times of customers having to go to their native department to maintain something associated to their cash wants. Smartphones and the web have modified monetary companies, permitting a enterprise like Nu to supply financial institution accounts and bank cards, amongst different issues, digitally to customers.
The corporate has been rising like wildfire. Nu posted $2.9 billion in income within the final three months, a determine that was 56% increased than in the identical interval final 12 months. The corporate has 110 million prospects in the present day, in comparison with simply 48 million three years in the past.
Nu has a powerful place in its important market of Brazil, but it surely has began to make progress in newer international locations like Mexico and Colombia.
Based on Latin America Stories, an estimated 70% of the inhabitants on this area of the world stays unbanked or underbanked, giving Nu a enormous alternative.
Nu’s top-line progress has translated into unbelievable profitability. Web earnings surged 107% 12 months over 12 months to $553 million in Q3. The revenue margin expanded significantly within the final 12 months.

r/stocks - $NU - Nu bank holdings due diligence

NU has 100m Brazilian prospects, which suggests out of their complete 216m inhabitants, 46% of the inhabitants makes use of NU.

Bull case? Future Development?

The place does the additional progress come from now?

NU CEO throughout an interview: https://www.youtube.com/watch?v=vTfxwu4JaRw – 14% market share in bank cards, 7% market share in private loans, 2% in investments & financial savings, displaying there’s way more potential for progress inside brazil.

Nu captures many of the decrease earnings people additionally, CEO states they will quickly department into increased web value prospects inside brazil.

NU’s enlargement into each Mexico and Colombia has the potential to considerably enhance the corporate’s progress and market attain.

Huge untapped market: An estimated 70% of the inhabitants in Latin America stays unbanked or underbanked, offering Nu with an enormous alternative for enlargement.

Confirmed success in new markets: In Mexico, Nu has already develop into the fifth largest credit score issuer inside simply 5 years of getting into the market. This demonstrates the corporate’s skill to rapidly achieve traction in new territories.

Diversification of income streams: Increasing into Mexico and Colombia permits Nu to cut back its dependence on the Brazilian market, probably mitigating country-specific dangers.

Scalable enterprise mannequin: Nu’s digital-first method and low-cost construction could be successfully replicated in these new markets, probably resulting in speedy buyer acquisition and profitability.

Cross-border synergies: As Nu expands its presence throughout a number of Latin American international locations, it might probably supply seamless cross-border monetary companies, which might be notably enticing to companies and people working throughout these markets.

First-mover benefit: By establishing a powerful presence in these markets early, Nu can probably construct model loyalty and seize market share earlier than conventional banks absolutely digitize their choices.

Elevated negotiating energy: A bigger presence throughout a number of international locations might give Nu extra leverage when negotiating with regulators, companions, and suppliers.

This enlargement technique, if executed efficiently, has the potential to remodel Nu from a Brazilian success story right into a dominant fintech participant throughout Latin America.

RISKS:

BRAZILIAN GEO-POLITICAL ENVIRONMENT

-Brazilian financial considerations: Traders are frightened about foreign money devaluation points in Brazil and inflationary headwinds in Nu’s major market.

SHORT-TERM OPERATIONAL RISK IN MEXICO & COLUMBIA

Rate of interest modifications: Latest rate of interest modifications in Colombia and Mexico, the place Nu additionally operates, have created short-term challenges for the corporate.

Possession: