Explore how Nubank increased its market cap by over 40% in 8 months. Learn why some investors are still interested in LatAm. Discover which startups in the region have been the most resilient and what other regions can learn from them. Dive into the growth and ambitions of a fintech company aiming to dominate Latin American financial services and global digital banking.
Newbank's market cap increased by 40% due to exceptional growth and profitability under David Velez's leadership.
Latin America offers venture capital opportunities despite the temporary exit of some investors, emphasizing the importance of cost efficiency for startups.
Deep dives
Success of Newbank in 2023
Newbank, under the leadership of David Velez, demonstrated exceptional growth and profitability in 2023. The company's market cap surged to $50 billion, showcasing a significant increase from the previous year. Newbank recorded a net profit of $1 billion in 2023, highlighting its ability to establish profitability while continuing to invest in growth. Velez emphasized the success of digital banking as a global trend, emphasizing the model's capacity to provide superior financial services and generate high profitability.
Expansion and Innovation of Newbank
Newbank, primarily based in Sao Paulo, expanded its operations to Mexico and Colombia in 2023, extending beyond the Brazilian market. The company's growth included the introduction of savings accounts, retail deposits, and bank licenses in these new markets, demonstrating its adaptability and market penetration. By focusing on diverse consumer segments such as high-income individuals and small businesses, Newbank positioned itself as a versatile and innovative player in the financial services sector.
Investment Landscape in Latin America
The podcast discussed the fluctuating landscape of venture capital investments in Latin America, acknowledging a trend where some global VCs have temporarily withdrawn from the region while committed investors continue to identify opportunities. David Velez highlighted the cyclic nature of venture capital in emerging markets, where exuberant periods are followed by retrenchment. Despite funding challenges, Velez encouraged startups to prioritize cost efficiency, unit economics, and real product-market fit to attract investment in the market.
This week, Mary Ann talked to David Vélez, the co-founder and CEO of Nubank, the $50 billion São Paulo, Brazil-based digital bank that offers credit cards, checking accounts and life insurance to consumers.
How Nubank has managed to increase its market cap by over 40% in eight months’ time.
Why some investors are sticking it out in LatAm, and why it’s a great place to still put venture dollars.
Which startups in LatAm have been the most resilient and what other regions can learn from them.
All right, sit back, hit play and have some fun with us. Equity will be back next Tuesday due to a U.S. holiday on Monday. See you then!
Credits: Equity is produced by Theresa Loconsolo with editing by Kell. Bryce Durbin is our Illustrator. We'd also like to thank the audience development team and Henry Pickavet, who manages TechCrunch audio products.