Since its inception, Nu has expanded its customer base dramatically, growing from 5 million in mid-2018 to over 105 million by mid-2024.

The company has established a strong presence in Latin America, where digital banking is still evolving, and has penetrated major markets like Brazil, Colombia, and Mexico.

Nu Holdings (NU) has emerged as a prominent growth investment opportunity in the fintech sector, blending financial services with technology.

With a forward price-to-earnings (P/E) ratio of 23.8, Nu appears undervalued compared to other emerging fintech firms, suggesting potential for future growth.

Nu achieved profitability for the first time last year, and analysts predict profit growth could exceed 50% annually over the next five years.

The company's strategy to cross-sell a variety of financial products could further enhance its average revenue per user (ARPU).

The company's impressive return on invested capital, exceeding 20%, reflects its effective scaling and operational efficiency despite being relatively new to profitability.

Consistently reporting over 50% revenue growth, Nu also maintains a gross profit margin exceeding 40%, showcasing its strong financial performance.

After launching its cryptocurrency trading platform, Nu gained over 1 million new users in just the first month, adding to its already substantial user base.

Notable investors like Cathie Wood and Warren Buffett's Berkshire Hathaway have shown interest in financial services stocks, highlighting the sector's appeal.

Targeting a vast potential customer base, Nu aims to attract anyone who uses money, allowing for rapid growth compared to traditional financial institutions.

As investors consider purchasing shares, they should be aware that while current valuations may seem inexpensive, patience will be required for substantial returns.