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Nubank closes 2019 with new loss of R $ 312 million, but triples the number of customers


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The largest Brazilian fintech, Nubank ended 2019 with a loss of R $ 312.7 million. But the negative result does not seem to raise any major concerns on the part of the institution.

The information is in a post published on the Nubank blog, which classifies the result as “directly linked to the level of growth” of fintech.

"We chose to invest, grow and offer services to more people," said Gabriel Silva, vice president of finance at Nubank.

Fintech's moves in 2019 support the executive's words. Revenues totaled R $ 568.1 million, against R $ 173.8 million recorded in 2018. Expenses, in turn, also increased – were R $ 878.2 million in 2019 and R $ 584.2 million in 2018.

Banking service fees and fee income were R $ 1.035 billion in 2019 and R $ 535.7 million in the previous year. At the same time, the delay rate over 90 days was reduced by 10.4% to 6.6% of the total portfolio.

The customer base, moreover, more than tripled: from 6 million at the end of 2018, Nubank reached 19.7 million, with the addition of 13 million new users. In January of this year, the digital bank announced that it had hit the mark of 20 million customers.

“2019 was a year of multiplication for Nubank: we gained more than 13 million new customers, we started to release credit cards in Mexico, we hired more than a thousand employees and we launched new products here in Brazil”.

'Calculated risk'

As shown by the Bitcoin Portal, this situation does not present much of a problem for Nubank. On the contrary, it would be a type of calculated risk, according to experts.

Valued at about $ 10 billion, Nubank already figures as a “unicorn” company – when a company's market value exceeds $ 1 billion. However, it still presents losses in its operation. In the first half of 2019, the deficit was R $ 139 million.

To date, Nubank has raised a total of $ 820 million in investment rounds. In addition to these contributions, the expectation is that the expansion undertaken by fintech will begin to pay off in the coming years.

"The average of 40 thousand new customers per day demonstrates the scalability of our infrastructure, designed from the beginning to allow for excellence in product and service even on a large scale," said fintech.

Another potential source of revenue is Nu Investimentos, announced on January 23 with the adhesion of this to Anbima (Brazilian Association of Entities in the Financial and Capital Markets). Although the initial function is to manage the group's cash, the new branch opens the door for fintech to manage and distribute own funds in the future. He is already authorized by the CVM (Brazilian Securities and Exchange Commission), the authority that regulates the sector in the country.

Aggressive strategy

Nubank has been betting on an aggressive market strategy for national and international expansion of its operations.

The Brazilian fintech already has operations in Mexico and is awaiting regulatory authorizations to operate in Argentina. There is also an office in Berlin (Germany), which is focused on infrastructure and data engineering.

Recently, Nubank announced the arrival of executives who passed through companies like Itaú and Facebook – at the same time that it denied rumors of changes in the summit. It also incorporated the technology company Plataformatec. Finally, it opened a new door with the adhesion to Anbima (Brazilian Association of Entities in the Financial and Capital Markets).

It is worth remembering that, despite the name, Nubank is not a bank itself – although this information is strange to the most lay people. Fintech currently has two licenses with the Central Bank: Payment Institutions and Financial Institutions.

Both, however, are sufficient for fintech to offer services that place it both as an option for customers and as a competitor of large banks.

For the second year in a row, Nubank was considered in 2019 one of the 50 most innovative fintechs in the world, according to a survey by consultancy KPMG.

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