The archive · Money & Fintech · Strategic decision · 2020–2025
Nomad: Brazil's US-dollar account bet hits R$500M ARR, first breakeven, 3M clients
Brazilian fintech Nomad (2020) bet affluent Brazilians would hold and invest dollars: 3M accounts and ~US$1B assets by May 2025, R$500M ARR, first breakeven.
Nomad
What the business is
Nomad is a Brazilian fintech offering a US-dollar digital account (debit card, FX, transfers) plus dollar investments — managed portfolios, US equities and US fixed income — and, since 2024, a Brazilian-currency credit card and local products for high-income clients.
Starting capital：US$20M Series A led by Monashees and Spark Capital in July 2021; US$61M Series B led by Tiger Global Management announced in late 2023 (Brazil Economy; Brazil Journal).
How it started
Founder and CEO Lucas Vargas launched Nomad in late 2020 for Brazilians going abroad: a digital US-dollar account with a debit card accepted overseas, designed from the start to also carry diversified dollar investments. COVID kept Brazil's borders shut for nearly a year after launch, so the first year was slow and the money raised kept the company going.
What happened
Nomad's 'Era 1' built out the product in 2021; 2022 was, in the CEO's words, its real first year. In 2023 ('Era 2') it focused on efficiency, widened the portfolio and closed a US$61M Series B led by Tiger Global Management. Clients doubled to 2.6M during 2024 and assets reached about US$1B — two-thirds in investments, inverted from two-thirds in banking a year earlier. Adding US fixed income required extra licences and a dedicated risk director, and a US broker-dealer licence then let Nomad keep revenue its investment-advisor partners had taken.
How it ended up
Nomad hit R$500M annualized revenue and reached breakeven in February 2025 — earlier than the mid-2025 plan — with small positive cash generation, and said it had no need of a new round. By May 2025 it had 3M clients and was targeting 4M by year-end; 2025 resources shifted to Brazil products (a Brazilian-currency credit card in beta with about 10k active users, planned to 10x), with insurance and credit as next steps.
Background
Nomad's bet was that affluent Brazilians wanted more than travel money: a full US-dollar account with dollar investments on top. Founder and CEO Lucas Vargas launched the fintech in late 2020, selling it first to travelers — 'going to the United States? open a Nomad account' — while designing managed portfolios, US equities and later US fixed income into the same product.
COVID closed Brazil's borders for nearly a year after launch, slowing the first year. A US$20M Series A led by Monashees and Spark Capital in July 2021 kept the company alive; 2022 was its first real growth year; a US$61M Series B led by Tiger Global Management closed out 2023. Clients then doubled to 2.6M during 2024, assets reached about US$1B, and investments went from one-third to two-thirds of those assets.
The product stack needed licences: US fixed income and a US broker-dealer licence (with a risk officer and minimum capital) let Nomad capture revenue its investment-advisor partners had kept. In February 2025 it reached R$500M annualized revenue and its first breakeven, ahead of plan, with small positive cash generation. By May 2025 it had 3M clients, aimed for 4M by year-end, and shifted most resources to Brazil — a beta Brazilian-currency credit card, then insurance and credit.
What has to be true
- Dollar assets as the real product: investments grew from 5% to 10% of clients in a year and came to represent two-thirds of about US$1B in assets, turning a travel account into recurring revenue.
- Licence-led margin: obtaining its own US broker-dealer licence removed partners who kept most of the product revenue, with minimum capital and controls as the price.
- One customer, many products: Nomad treated the dollar account as a doorway to travel, investments, fixed income and now Brazil cards and credit for the same high-income client.
- Breakeven before scale-out: first-time positive cash in February 2025 — earlier than the mid-2025 target — let it refuse new funding and still finance Brazil expansion.
What can be applied
A travel account opens the door; dollar investing is the business. Nomad's value came from recurring, licence-protected investment revenue, and breakeven followed once investments dominated.
Aftermath
As of 22 May 2025 Nomad was live and scaling: 3M US-dollar accounts, about US$1B in assets, R$500M annualized revenue, a first breakeven in February 2025 and a 4M-client target for the year. It said it did not need a new round but would consider one at the right valuation, and shifted 2025 resources toward Brazil — a beta Brazilian-currency credit card with about 10k active users planned to grow 10x, with insurance and credit next. Risks noted in coverage: demand depends on affluent Brazilians wanting hard currency, and the new broker-dealer licence adds regulatory and capital obligations.
Sources
- Nomad fatura meio bi e atinge breakeven. Agora, vai focar no Brasil
- Mais independente, Nomad avança em investimentos e mira 4 milhões de clientes
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