Nubank’s IPO is an alternative to accelerate expansion, says founder

The initial public offering of shares by Nubank (IPO), scheduled for the second week of December on the Brazilian and US stock exchanges, will serve to boost the growth of the business, which has as one of its priorities to expand the offer of products in Mexico and Colombia.

“Making an IPO is a consequence of the growth we’ve been having for almost eight years and a way to accelerate our impact,” said David Vélez, co-founder of Nubank, in a video released this Wednesday (24) to comment on the IPO operation.

According to the executive, the financial group’s ecosystem is increasingly complete to serve customers in the five major phases of a financial journey: payments, saving money, investments, loans and insurance.

Vélez also commented that, in Brazil, where operations are already a little more mature, fintech managed to report its first net profit, of BRL 76 million, in the first half of 2021. However, the businessman recognized that the group as a everything is “not quite there” yet, in reference to the potential profit the business has. From January to September 2021, the group reported a loss of US$ 99.1 million (R$ 560 million).

“Now, we are prioritizing investing in new product growth, especially in other countries where we are still starting [em busca de lucratividade]”, said the executive. In addition to Brazil, the digital bank has operations in Mexico and Colombia.

He also highlighted in the video some of the main points of attention on the radar for the coming years. “All businesses are subject to risks and obstacles. Overall, we need to continue to support our brand in all respects, we need to maintain the privacy of our customers’ data at all times, respect government regulatory organizations, and be mindful of rates of exchange and interest rates in the countries where we operate.”

Co-founder of Nubank, Cristina Junqueira highlighted the base of 48 million customers reached by the digital bank in the three countries in which it operates, as well as its indirect effects. “It’s not just the number, it’s the impact we have on people’s lives, because there are 48 million, but many of these people that we’ve been including in the financial system,” said the executive.

She also added that the distribution of Nubank BDRs under the NuSocios program seeks to act as a gateway to the Stock Exchange for clients who have not yet had the opportunity to invest in the financial market.

“Investing in the IPO is investing in the Stock Exchange, so there are always risks involved, it is important to have as much information as possible so that everyone can make the best decision for their own money,” said Junqueira.

One of the institution’s challenges is to expand diversity, which is low in the financial system as a whole.

In October of last year, Cristina became involved in a controversy when she said that hiring black professionals is difficult and that the company cannot “level it out”. The businesswoman later apologized for the statement. Earlier this year, the bank presented targets for hiring afro-descendants.

Fintech has attracted big investors. In June, American mega-investor Warren Buffett invested US$ 500 million (R$ 2.82 billion) in the digital business – Nubank has been expanding its range of services to clients.

Recently, the bank announced that it is preparing to include a call and put option in its application later this year.

Nubank’s foray into the investment market began in September 2020, when the company acquired the broker Easynvest. In August, the broker’s brand was switched to Nu Invest, amidst a backdrop of increased competition from traditional financial institutions.

In late August, the bank announced its first investment in the e-commerce market, with the acquisition of Spin Pay, an instant payments fintech that supports Pix purchases in e-commerce.

In June, Nubank brought the singer Anitta to join the bank’s board of directors.