Remitly Expands Rapidly in Global Remittance Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 36 minutes ago
0mins
Source: NASDAQ.COM
- Remittance Market Growth: Remitly stands out in the global remittance market with a 37% year-over-year increase in send volume to $22.1 billion last year, driving a 25% revenue growth, showcasing its strong customer acquisition capabilities in the U.S. and plans for international expansion into regions like the Middle East.
- Business Expansion Potential: Although Remitly's total remittance volume over the past 12 months is less than $100 billion, the introduction of new services like digital wallets and business transactions is expected to enable double-digit growth for many years, making it an ideal candidate for a long-term investment portfolio.
- Coupang's Market Opportunity: Coupang's stock has dropped 70% from its all-time highs to $15.50 per share, and despite only an 8% revenue growth last quarter, it is projected to return to double-digit growth by 2026, highlighting its long-term potential in the South Korean e-commerce market.
- Nu Bank's Customer Base: Nu Bank boasts 135 million active customers across Brazil, Mexico, and Colombia, with $16 billion in revenue over the past 12 months, and a record monthly revenue per active customer of $15.90, indicating significant expansion potential and future profitability in the digital banking sector.
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Analyst Views on NU
Wall Street analysts forecast NU stock price to rise
9 Analyst Rating
7 Buy
2 Hold
0 Sell
Strong Buy
Current: 13.160
Low
16.00
Averages
18.80
High
22.00
Current: 13.160
Low
16.00
Averages
18.80
High
22.00
About NU
Nu Holdings Ltd is a Brazil-based holding company, which engages in the provision of digital banking services. The Company offers its customers products across the five financial seasons: spending, saving, investing, borrowing, and protecting. Its spending solutions are designed to help customers pay for goods and services in their everyday lives with a customized credit line or instantly through a mobile phone, while collecting loyalty points and rewards on applicable transactions. Its savings solutions are designed to help customers deposit, manage, and save their money in interest-earning accounts with complementary debit cards. Its investing solutions are designed to help customers invest their money in investment products and services. Its borrowing solutions are designed to provide customers with unsecured loans that are easy to receive, manage, and pay back. Its protecting solutions are designed to help customers secure life insurance and funeral benefits.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Three Growth Stocks to Buy and Hold for 20 Years
- Remittance Disruptor: Remitly Global's send volume surged 37% year-over-year to $22.1 billion last quarter, driving a 25% revenue increase, showcasing its strong customer acquisition in the U.S. and plans for international expansion into the Middle East, positioning it for double-digit growth ahead.
- E-commerce Imitator's Potential: Coupang's revenue has nearly tripled since going public, reaching $35 billion, and despite a recent slowdown to 8% growth due to a data leak, it is expected to rebound to double-digit growth by 2026, with a current market cap of just $28 billion making it attractive for investors.
- Digital Banking Surge: Nu Holdings boasts 135 million active customers across Brazil, Mexico, and Colombia, generating $16 billion in revenue over the past year, with a record monthly revenue per active customer of $15.90, indicating significant potential for scaling up revenue and profits through product expansion.
- Long-term Investment Appeal: All three companies exhibit strong growth potential, with Remitly and Nu Holdings expected to achieve double-digit growth, and Coupang's undervaluation making them compelling long-term investment choices for the next 20 years.
See More
Remitly Expands Rapidly in Global Remittance Market
- Remittance Market Growth: Remitly stands out in the global remittance market with a 37% year-over-year increase in send volume to $22.1 billion last year, driving a 25% revenue growth, showcasing its strong customer acquisition capabilities in the U.S. and plans for international expansion into regions like the Middle East.
- Business Expansion Potential: Although Remitly's total remittance volume over the past 12 months is less than $100 billion, the introduction of new services like digital wallets and business transactions is expected to enable double-digit growth for many years, making it an ideal candidate for a long-term investment portfolio.
- Coupang's Market Opportunity: Coupang's stock has dropped 70% from its all-time highs to $15.50 per share, and despite only an 8% revenue growth last quarter, it is projected to return to double-digit growth by 2026, highlighting its long-term potential in the South Korean e-commerce market.
- Nu Bank's Customer Base: Nu Bank boasts 135 million active customers across Brazil, Mexico, and Colombia, with $16 billion in revenue over the past 12 months, and a record monthly revenue per active customer of $15.90, indicating significant expansion potential and future profitability in the digital banking sector.
See More
Mercury Raises $200 Million at $5.2 Billion Valuation
- Successful Funding: Mercury has successfully raised $200 million, achieving a valuation of $5.2 billion, which represents a 49% increase from its previous funding round just 14 months ago, highlighting the company's strong growth potential amidst a generally sluggish fintech sector.
- Expanding Customer Base: With over 300,000 customers, including one-third of early-stage U.S. startups, Mercury has been profitable for the past four years and recently reached an annualized revenue of $650 million, indicating its competitive strength and market appeal.
- Bank Regulatory Progress: Mercury has received conditional approval from the Office of the Comptroller of the Currency to become a federally regulated bank, with plans to finalize this by 2027, allowing it to retain more revenue and expand its loan offerings, thereby enhancing its market position.
- AI-Driven Growth: Mercury is leveraging AI technology to drive startup growth, launching tools like AI coding assistants and planning to unveil a broader AI interface later this year, which will enhance customer experience and solidify its leadership in digital financial services.
See More
Mercury Raises $200 Million at $5.2 Billion Valuation
- Successful Fundraising: Mercury has successfully raised $200 million, achieving a valuation of $5.2 billion, which represents a 49% increase over its last funding round, showcasing its strong performance in the fintech sector amidst a broader market downturn.
- Strong Profitability: The company has been profitable for the past four years, with annualized revenue reaching $650 million and over 300,000 customers, a third of which are early-stage U.S. startups, indicating the sustainability of its business model and robust market demand.
- Banking Regulation Progress: Mercury has received conditional approval from the Office of the Comptroller of the Currency to become a regulated bank by 2027, which will enable it to expand its loan offerings and join the Zelle network, thereby reducing reliance on partner banks and enhancing its competitive position.
- AI-Driven Growth: Mercury leverages generative AI to fuel the formation of new businesses, with the CEO noting that AI not only supports the growth of AI startups but also helps non-AI companies quickly build applications and products, further solidifying its leadership in the fintech space.
See More
Upstart Applies for Bank Charter, Transitioning to Lender Model
- Transition to Banking Model: Upstart has applied for a bank charter, intending to shift from a platform to a lending institution, a significant change that will enable it to lower funding costs and access deposits as a new revenue stream, thereby enhancing its position in a competitive market.
- Funding Cost Advantage: As a bank, Upstart will be able to obtain cheaper funds through deposits rather than relying on wholesale loan resales, which will provide greater operational flexibility and improve profitability in future operations.
- Intensifying Market Competition: Although Upstart's transformation may present new opportunities, the digital banking space is highly competitive, with companies like SoFi and Chime rapidly gaining traction, necessitating Upstart to find a unique market position to stand out.
- Poor Stock Performance: Upstart's stock has fallen 33% this year, and despite management's confidence in the transition, the market's lukewarm response to its latest quarterly earnings report indicates that its road to recovery remains long and complicated.
See More
Upstart Holdings Seeks Bank Charter to Transform Business Model
- Bank Charter Application: Upstart Holdings has recently applied for a bank charter to lower funding costs and expand its business, aiming to become 'the first bank built from the ground up on AI,' which could transform its business model and boost its stock price.
- Loan Holding Strategy: Although Upstart initially did not hold any debt, it has started holding some loans on its balance sheet and has entered into an agreement with Fortress Investment Group to purchase $1.25 billion in consumer loans over the next 15 months, raising concerns in the market.
- Diversified Funding Sources: By obtaining a bank charter, Upstart will gain access to new funding sources through deposits, reducing reliance on wholesale loan resales, allowing it to secure funds at lower rates and hold loans longer to accrue interest income.
- Competition and Challenges: In an increasingly crowded digital banking landscape, Upstart faces pressure from companies like SoFi and Nu Holdings; while its transformation may help lower funding costs, it must also navigate stringent government regulations and market competition challenges.
See More
Three Growth Stocks to Buy and Hold for 20 Years
- Remittance Disruptor: Remitly Global's send volume surged 37% year-over-year to $22.1 billion last quarter, driving a 25% revenue increase, showcasing its strong customer acquisition in the U.S. and plans for international expansion into the Middle East, positioning it for double-digit growth ahead.
- E-commerce Imitator's Potential: Coupang's revenue has nearly tripled since going public, reaching $35 billion, and despite a recent slowdown to 8% growth due to a data leak, it is expected to rebound to double-digit growth by 2026, with a current market cap of just $28 billion making it attractive for investors.
- Digital Banking Surge: Nu Holdings boasts 135 million active customers across Brazil, Mexico, and Colombia, generating $16 billion in revenue over the past year, with a record monthly revenue per active customer of $15.90, indicating significant potential for scaling up revenue and profits through product expansion.
- Long-term Investment Appeal: All three companies exhibit strong growth potential, with Remitly and Nu Holdings expected to achieve double-digit growth, and Coupang's undervaluation making them compelling long-term investment choices for the next 20 years.
See More
Remitly Expands Rapidly in Global Remittance Market
- Remittance Market Growth: Remitly stands out in the global remittance market with a 37% year-over-year increase in send volume to $22.1 billion last year, driving a 25% revenue growth, showcasing its strong customer acquisition capabilities in the U.S. and plans for international expansion into regions like the Middle East.
- Business Expansion Potential: Although Remitly's total remittance volume over the past 12 months is less than $100 billion, the introduction of new services like digital wallets and business transactions is expected to enable double-digit growth for many years, making it an ideal candidate for a long-term investment portfolio.
- Coupang's Market Opportunity: Coupang's stock has dropped 70% from its all-time highs to $15.50 per share, and despite only an 8% revenue growth last quarter, it is projected to return to double-digit growth by 2026, highlighting its long-term potential in the South Korean e-commerce market.
- Nu Bank's Customer Base: Nu Bank boasts 135 million active customers across Brazil, Mexico, and Colombia, with $16 billion in revenue over the past 12 months, and a record monthly revenue per active customer of $15.90, indicating significant expansion potential and future profitability in the digital banking sector.
See More
Mercury Raises $200 Million at $5.2 Billion Valuation
- Successful Funding: Mercury has successfully raised $200 million, achieving a valuation of $5.2 billion, which represents a 49% increase from its previous funding round just 14 months ago, highlighting the company's strong growth potential amidst a generally sluggish fintech sector.
- Expanding Customer Base: With over 300,000 customers, including one-third of early-stage U.S. startups, Mercury has been profitable for the past four years and recently reached an annualized revenue of $650 million, indicating its competitive strength and market appeal.
- Bank Regulatory Progress: Mercury has received conditional approval from the Office of the Comptroller of the Currency to become a federally regulated bank, with plans to finalize this by 2027, allowing it to retain more revenue and expand its loan offerings, thereby enhancing its market position.
- AI-Driven Growth: Mercury is leveraging AI technology to drive startup growth, launching tools like AI coding assistants and planning to unveil a broader AI interface later this year, which will enhance customer experience and solidify its leadership in digital financial services.
See More
Mercury Raises $200 Million at $5.2 Billion Valuation
- Successful Fundraising: Mercury has successfully raised $200 million, achieving a valuation of $5.2 billion, which represents a 49% increase over its last funding round, showcasing its strong performance in the fintech sector amidst a broader market downturn.
- Strong Profitability: The company has been profitable for the past four years, with annualized revenue reaching $650 million and over 300,000 customers, a third of which are early-stage U.S. startups, indicating the sustainability of its business model and robust market demand.
- Banking Regulation Progress: Mercury has received conditional approval from the Office of the Comptroller of the Currency to become a regulated bank by 2027, which will enable it to expand its loan offerings and join the Zelle network, thereby reducing reliance on partner banks and enhancing its competitive position.
- AI-Driven Growth: Mercury leverages generative AI to fuel the formation of new businesses, with the CEO noting that AI not only supports the growth of AI startups but also helps non-AI companies quickly build applications and products, further solidifying its leadership in the fintech space.
See More
Upstart Applies for Bank Charter, Transitioning to Lender Model
- Transition to Banking Model: Upstart has applied for a bank charter, intending to shift from a platform to a lending institution, a significant change that will enable it to lower funding costs and access deposits as a new revenue stream, thereby enhancing its position in a competitive market.
- Funding Cost Advantage: As a bank, Upstart will be able to obtain cheaper funds through deposits rather than relying on wholesale loan resales, which will provide greater operational flexibility and improve profitability in future operations.
- Intensifying Market Competition: Although Upstart's transformation may present new opportunities, the digital banking space is highly competitive, with companies like SoFi and Chime rapidly gaining traction, necessitating Upstart to find a unique market position to stand out.
- Poor Stock Performance: Upstart's stock has fallen 33% this year, and despite management's confidence in the transition, the market's lukewarm response to its latest quarterly earnings report indicates that its road to recovery remains long and complicated.
See More
Upstart Holdings Seeks Bank Charter to Transform Business Model
- Bank Charter Application: Upstart Holdings has recently applied for a bank charter to lower funding costs and expand its business, aiming to become 'the first bank built from the ground up on AI,' which could transform its business model and boost its stock price.
- Loan Holding Strategy: Although Upstart initially did not hold any debt, it has started holding some loans on its balance sheet and has entered into an agreement with Fortress Investment Group to purchase $1.25 billion in consumer loans over the next 15 months, raising concerns in the market.
- Diversified Funding Sources: By obtaining a bank charter, Upstart will gain access to new funding sources through deposits, reducing reliance on wholesale loan resales, allowing it to secure funds at lower rates and hold loans longer to accrue interest income.
- Competition and Challenges: In an increasingly crowded digital banking landscape, Upstart faces pressure from companies like SoFi and Nu Holdings; while its transformation may help lower funding costs, it must also navigate stringent government regulations and market competition challenges.
See More
