Nubank’s IPO filing gives us a peek into neobank economics

Welcome to TechCrunch+ Tuesday

After Nubank filed its F-1, Natasha Mascarenhas and Alex Wilhelm carefully dissected the document to learn more about the operations of one of the world’s largest startups.

“With over 40 million users across Brazil, as well as Mexico and Colombia,” the fintech company’s LTV/CAC ratio is central to its success, they found. Notably, as many as 90% of Nubank customers were acquired organically.

Even with more competitors entering their markets, Nubank’s sticky customers generate a relatively high monthly average revenue.

As a direct result, its CAC payback periods are relatively short and its “losses do not appear even close to lethal,” report Natasha and Alex. “Indeed, they are more modest than we anticipated.”

More neobanks are waiting to get on-deck and take their turn at bat in an IPO: PicPay, Chime and Monzo are likely the next few to enter the public markets, and these “fresh metrics could prove that neobanks are finally moving off their investing phase.”

Thanks very much for reading TechCrunch+. I hope you have a great week.

Walter Thompson
Senior Editor, TechCrunch+
@yourprotagonist

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“It makes one wonder how Netflix’s plans will influence game developers and studios around the world,” writes Sendbird CEO John S. Kim.

“More importantly, how will developers respond to Netflix’s entry into the space?”

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“There hasn’t been this big of a change since iOS 11 was released over four years ago,” he writes.

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Quick observations on Udemy’s unicorn edtech IPO

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