Brazil’s Nubank has emerged as the world’s most valuable neobank, boasting a valuation of US$58 billion, according to new data released by Multiples, a UK-based valuation data platform. This remarkable figure reflects strong investor confidence in Nubank’s growth potential and its perceived ability to dominate the digital banking sector.

In addition to its market value, Nubank also leads in financial performance, generating in 2024 US$11.5 billion in revenue and US$2.2 billion in pre-tax profit. These numbers suggest that Nubank has successfully scaled its operations while maintaining strong financial performance. It demonstrates operational efficiency, effective cost management, and a well-diversified business model.

Despite its scale and financial performance, Nubank is valued significantly lower than some of its peers. Its enterprise value-to-revenue multiple (EV/R) currently stands at 5, which is less than half that of UK-based Revolut whose EV/R is at a significant 11.7.

EV/R is a measure of the value of a stock that compares a company’s enterprise value to its revenue. It’s one of the main indicators used by investors to gauge whether a stock is priced fairly.

This disparity means that investors are willing to pay over twice as much for each dollar of Revolut’s revenue compared to Nubank’s. This may suggest that investors are viewing Revolut as having greater growth potential, a more favorable strategic position, or greater expansion opportunities. It may also suggest that the market is undervaluing Nubank relative to its actual earnings power.

Besides Revolut, other neobanks with high EV/R multiples include South Korea’s Kbank with 11.2, and Argentina’s Uala with 9.8. Meanwhile, Monzo in the UK shares the same EV/R as Nubank of 5. Below-industry multiples are seen among Kakaobank from South Korea (3.5), Starling Bank (3.9) from the UK, Bunq from the Netherlands (4.5), and Dave (3.6) from the US. The neobanking industry’s EV/R median currently sits at 6.

Founded in 2013 and headquartered in Sao Paulo, Nubank is the largest digital bank in Latin America (LatAm) and one of the most influential ones globally. Nubank provides a comprehensive suite of digital financial products and services designed to simplify banking and improve financial inclusion, including a no-fee digital payment account, international credit cards, personal loans, insurance products, investment services, and business banking solutions.

With over 114 million customers across Brazil, Mexico, and Colombia, Nubank is the second largest digital bank globally by customer base.

Revolut and WeBank follow

Trailing Nubank in valuation is Revolut, a UK-based neobank valued at US$48 billion. Founded in 2015, Revolut offers banking services for individuals and businesses, including crypto, stock trading, loans, and foreign exchange (FX). The company claims more than 50 million personal customers and 500,000 business customers in about 50 countries. In Switzerland, Revolut serves more than 1 million private customers.

In 2024, Revolut posted revenue of US$4.1 billion and a pre-tax profit of US$1.4 billion, ranking it second globally among neobanks on both counts.

Close behind Revolut is WeBank, valued at US$32.4 billion and with revenue of US$5.4 billion and pre-tax profit of US$1.5 billion, according to Multiples.

Founded in 2014, WeBank offers a comprehensive suite of financial products and services tailored for individuals and small to medium-sized enterprises (SMEs). These include digital accounts, savings, wealth management, and payment services. With 399 million customers, WeBank is the world’s biggest digital bank by customer base.

Collectively, Nubank, Revolut and WeBank generate more revenues and profits than all other neobanks combined, totaling US$21 billion in revenue and US$5.1 billion in pre-tax profits. Their combined valuation stands at US$138.3 billion.

Europe leads in neobanking

Among the world’s ten most valuable neobanks, six are based in Europe: Revolut, Wise, Monzo, Starling Bank, N26 and Bunq. This reflects the region’s dominance online banking.

Within Europe, Denmark leads in online banking penetration, with a rate of 97.76%, according to a 2024 Statista consumer survey. Norway follows closely with 96.8% of its citizens managing their finances digitally, while the Netherlands rounds out the top three at 96.35%.

Europe’s digital banking leaders are also among the region’s most successful fintech companies. Of Europe’s 13 profitable fintech unicorns, seven are digital banks, reflecting the industry’s growth and maturity.

Featured image: Edited by Fintech News Switzerland, based on image by thaspol_s via Freepik