Digital bank Nu Holdings (NU 2.00%) has a market capitalization of $72 billion — and that makes it a sizable business. However, many American investors might not know that much about the company because it operates in Latin America and has no U.S. presence.

Here’s a perfect example of why it’s important to understand that there are investment opportunities in international markets. This fintech stock might prove that point. Should you buy Nu Holdings while it’s trading below $16? Here’s why that might be a smart decision.

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Customer additions and revenue growth are through the roof

The market loves a good growth story — and Nu Holdings is exactly that. The company’s customer base went from 65 million at the end of Q2 2022 to 123 million as of June 30. In Nu’s home country of Brazil, the business counts 60% of the adult population as its customers. Newer markets of Mexico and Colombia are registering remarkable success, even though Nu’s penetration is still in the early stages in these countries.

Nu is benefiting from some notable tailwinds. It helps that internet and smartphone penetration in Latin America continue to grow. This provides a favorable backdrop for a digital-only bank like Nu to find broader adoption.

Essentially, Nu is riding the wave of the Latin American economy’s development. Given that a large portion of the population here is still unbanked or underbanked, Nu still has lots of potential for growth.

The company’s revenue increased 29% year over year in Q2. Wall Street consensus sell-side analyst estimates believe the top line will rise by 67% between 2025 and 2027. That outlook should make shareholders excited.

Nu’s focus on product innovation should help it reach more customers. Management has also hinted at entering new countries in the future, basically replicating strategies that have worked so well in its existing markets.

This is an extremely profitable enterprise

Companies that have access to cheap capital usually care about growth more than anything else when it comes to strategic priorities. That’s why over the past decade or so, some businesses have put up huge gains, adding customers and increasing sales rapidly. The issue, however, is that these companies don’t care about profits.

Nu bucks this trend and stands out. It’s an extremely profitable enterprise, which might be a surprise to many. Nu registered $1.2 billion in net income through the first six months of 2025. That translated to a phenomenal net profit margin of 17.4%. The margin has generally increased in recent years, which underscores the company’s ability to scale up in a lucrative manner.

Investors should pay attention to the unit economics. It cost the company $0.80 per month in Q2 to serve the average customer. But on the flip side, the average revenue per active customer came in at $12.20. After viewing these two figures, it makes sense why the leadership team is trying to grow so quickly.

Nu also has the advantage of not running any physical bank branches. A brick-and-mortar retail strategy like this would entail sizable operating expenses. Nu avoids this, which can help drive higher margins over time.

This fintech stock trades at a reasonable valuation

In the past three years, Nu’s shares have skyrocketed 262% (as of Oct. 16), thanks to incredible fundamental performs that has caught the market’s attention. After such a phenomenal gain, investors might be questioning the stock’s appeal. The last thing you’d want to do is overpay.

That’s certainly not the case here. The valuation still looks very compelling. Investors can buy the stock at a forward price-to-earnings ratio of 18.7. At under $16 per share, there is sizable upside over the next five years from the possibility of both higher earnings and valuation expansion.

For decades, investors looking to add a new asset to their portfolio would talk to their broker or scour financial publications before parting with their hard earned money. Today, many younger investors turn to social media platforms like YouTube or X where they can find helpful tips—but more often a passel of predatory scammers shilling dubious assets they may not even have invested in. It’s a problem, but one Robinhood says it is poised to fix.

While funding may be scarce for some, Europe’s fastest-growing startups still have their pick.

The latest beneficiary of that investor appetite is Finom, a five-year-old, Amsterdam-based challenger bank that targets small and medium-size businesses across Europe. The company, which claims to have doubled its revenue in 2024, just closed a €115 million Series C equity round (around $133 million), TechCrunch learned exclusively. This comes only a few weeks after it landed $105 million in growth funding from General Catalyst, its backer since 2021.

Finom’s business model centers on providing European SMBs with a financial platform that combines banking, invoicing, and a growing range of features, including AI-enabled accounting. “Because theoretically, entrepreneurs don’t need to have an accountant at all,” said CEO Andrey Petrov (on the far left in the picture).

The startup’s ambitious growth targets reflect this vision. While Petrov says Finom’s goal of having one million business customers by the end of 2026 is motivational and not set in stone, its new funding makes that target slightly more attainable.

This belief that Finom could serve a fair share of Europe’s 26 million SMBs is also reflected in its Series C. The round was led by AVP (formerly AXA Venture Partners), with participation from new investor Headline (formerly e.ventures) through Headline Growth. Existing investors Cogito Capital, General Catalyst, and Northzone also joined the round.

Despite this momentum, the startup may find it easier to win clients over from legacy banks  — its current plan — than from other fintechs.

Even after its Series C brought its total funding to roughly $346 million, Finom has far less external capital than Monzo, N26, Revolut, or Wise, which all raised more than $1 billion. Its funding to date is more comparable to the approximately $700 million raised by Finom’s closest peer, French unicorn Qonto — though the comparison isn’t perfect.

What makes Finom’s funding structure particularly interesting is its non-traditional component. Unlike typical VCs, General Catalyst took no equity in Finom with its non-traditional round; the capital from its Customer Value Fund (CVF) can only be used for growth, which is how it plans to get its money back. 

Combined with the Series B, this non-traditional funding round would have been enough for the Dutch company to reach profitability, according to chairman and co-founder Kos Stiskin (on the far right in the picture). But Finom was also hoping to raise equity by the end of the year, and get a “good and nice” new valuation in the process. What it didn’t anticipate was closing both deals so close to each other.

“One took longer than expected, and one was much faster than expected,” Stiskin told TechCrunch. He declined to disclose the updated valuation, stating only that it is twice the (also undisclosed) valuation associated with its 2024 $54 million Series B.

The timing may have worked in Finom’s favor. Since the company doesn’t publicize its unit economics — apart from its user base of 125,000 — the fact that General Catalyst took a look under the hood likely helped boost interest and speed up the funding. That vote of confidence — and its direct interest in recouping its money — may have been the signal that got investors to hurry up and write checks.

Beyond the signaling effects, getting the Customer Value Fund to finance Finom’s marketing efforts without giving up equity may seem like a good deal for its Series C backers — which include General Catalyst itself.

However, the Series C will also fund riskier efforts than customer acquisition through marketing. 

According to Petrov, one of its uses could be strategic, opportunistic acquisitions that would allow it to expand either its customer base or its product portfolio. That represents a shift in strategy, given that Finom has only acquired one company so far — in 2022, when it purchased Kapaga, a British cross-border payment service when Finom was considering expanding into the U.K.

Since then, Finom has shifted its focus to some of Europe’s largest markets, where it sees greater opportunity than in the U.K. The company believes these markets have fewer challenger banks competing for SMBs and that traditional banks are doing a poor job serving small businesses.

Like many neobanks, however, it only operates with an electronic money institution (EMI) license in most of its main markets: the Netherlands, France, Italy, and Spain (though not Germany, where it partnered with Solaris, which has a full banking license).

Despite these licensing limitations, it was able to add lending in the Netherlands, which it sees as a testing ground for its credit offering — something Petrov sees as a must-have for any fintech and for business customers. 

This lending initiative is also in line with Finom’s efforts to expand its product line both horizontally — with deposits and loans — and vertically, “starting from a banking account and ending in paying taxes, reports, and everything.” AI is involved as well, and not just on the product side. 

The company is also leveraging AI internally. With a team of 500, it expects to make some business- and tech-related hires, though not so much to scale its operations. “We’re adding some people, but mostly we’re adding new types of AI agents to work with internally,” Petrov said. “So we are hiring less than we need, and we see good output in terms of using AI and AI agents to automate part of [our] routine tasks.”

Finom’s leadership structure has also evolved. The split of duties between Finom’s four co-founders has gone through some changes over the years, with Petrov now the sole CEO — a role he once shared with Yakov Novikov, who is now an advisor alongside Oleg Laguta. 

The three of them previously created Russian digital bank Modulbank. But this time, Finom’s focus is on Europe and its entrepreneurs who are, in Stiskin’s words, “the backbone of the European Union economy.”