FinTechNews

Brazilian Fintech Stark Bank Secures $45 Million in Investment Round

On Monday, Stark Bank, a Brazilian financial solutions
platform, announced that it received a $45 million investment led by Ribbit
Capital, Lachy Groom and Bezos Expeditions from Amazon’s founder, Jeff Bezos.

According to Reuters, the investment round also included the
founders of Airbnb, Kavak, as well as executives from DST, Visa, and Coinbase. Upon
closing the round, Rafael Stark, the company’s founder, said the deal brings
the company “close to unicorn status.” Unicorns are startups valued at more
than $1 billion.

There are over 300 customers at the company, from small to
large, many of whom are also technology-based businesses, including Quinto
Andar, Loft, Buser, and Bitso, as well as Colgate. According to Stark, the
amount raised will enable the fintech to expand its product offering.

It comes about four months after the fintech raised $13 million
in an initial round of venture capital funds at a time when investment in
Brazilian startups is waning as their dispute with large banks intensifies.

Itausa Stake in XP

Last month, Itausa SA, a Brazilian investment firm,
announced on Wednesday that it had sold 12 million class A shares in XP Inc for
about 1.8 billion Brazilian real ($366.58 million). The company holds 11.51% of
the brokerage’s total capital.

XP was sold as part of Itausa’s strategy to lower its stake
and raise additional capital during 2022, as CEO Alfredo Setubal said last
month that the company would continue selling shares. Itausa reiterated its
strategy, saying that it still expects to sell 24 million shares of XP this
year as it sees it as a non-strategic asset. Following its recent investments,
the holding company noted it is in need of rebuilding its cash position.

In 2019, XP Inc., Brazil’s largest stockbroker, was expected
to raise between $1.5 billion and $2.1 billion on Nasdaq in what could be the
biggest initial public offering for a Brazilian company. The company planned to
price its public offering at around the midpoint of its expected price range.
XP had set a range last month of $22 and $25 per share, and at the midpoint, it
would be valued at about $14 billion.

On Monday, Stark Bank, a Brazilian financial solutions
platform, announced that it received a $45 million investment led by Ribbit
Capital, Lachy Groom and Bezos Expeditions from Amazon’s founder, Jeff Bezos.

According to Reuters, the investment round also included the
founders of Airbnb, Kavak, as well as executives from DST, Visa, and Coinbase. Upon
closing the round, Rafael Stark, the company’s founder, said the deal brings
the company “close to unicorn status.” Unicorns are startups valued at more
than $1 billion.

There are over 300 customers at the company, from small to
large, many of whom are also technology-based businesses, including Quinto
Andar, Loft, Buser, and Bitso, as well as Colgate. According to Stark, the
amount raised will enable the fintech to expand its product offering.

It comes about four months after the fintech raised $13 million
in an initial round of venture capital funds at a time when investment in
Brazilian startups is waning as their dispute with large banks intensifies.

Itausa Stake in XP

Last month, Itausa SA, a Brazilian investment firm,
announced on Wednesday that it had sold 12 million class A shares in XP Inc for
about 1.8 billion Brazilian real ($366.58 million). The company holds 11.51% of
the brokerage’s total capital.

XP was sold as part of Itausa’s strategy to lower its stake
and raise additional capital during 2022, as CEO Alfredo Setubal said last
month that the company would continue selling shares. Itausa reiterated its
strategy, saying that it still expects to sell 24 million shares of XP this
year as it sees it as a non-strategic asset. Following its recent investments,
the holding company noted it is in need of rebuilding its cash position.

In 2019, XP Inc., Brazil’s largest stockbroker, was expected
to raise between $1.5 billion and $2.1 billion on Nasdaq in what could be the
biggest initial public offering for a Brazilian company. The company planned to
price its public offering at around the midpoint of its expected price range.
XP had set a range last month of $22 and $25 per share, and at the midpoint, it
would be valued at about $14 billion.


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