Stark Bank, one of the few startups from Latin America that received funding from Jeff Bezos’ family office, is currently recording profits as part of its activities to assist companies in handling payment transactions.
Also, the mentioned company practically does not use those investment funds that were raised during the financing rounds.
Stark Bank is based in Sao Paulo. In 2023, this company handled payment transactions totaling 155 billion reais ($31 billion). This figure is three times higher than the result of 2022. At the same time, the company’s profit for 2023 more than doubled, reaching 71.5 million reais. This was announced by the founder of the firm, Rafael Stark, during a conversation with media representatives.
The startup aims to gain a share in the Brazilian financial market, where its competitors are large corporate banks. The corresponding statement was made by Rafael Stark, who owns 38% of the firm. The company handles not only payment transactions but also invoices and receivables. Currently, the firm serves approximately 600 clients, including Gol Linhas Aereas Inteligentes SA, Localiza Rent a Car SA, Cia Ultragaz SA, Loft, and QuintoAndar.
Rafael Stark noted that the startup he founded captures a high level of profitability at a time when many technology companies are trying to cope with the problem of losing money. He says that currently, the company does not need to continue to raise money and reduce his stake. Rafael Stark stated that the startup should continue to grow and create much more value in the future.
In 2022, the company was able to raise $45 million from investors, including Bezos Expeditions, the family office of the Amazon founder’s family, and Ribbit Capital, as part of a Series B financing round. Previous investors in the startup were Fabio Igel of Monashees Capital, Stuart Butterfield of Slack Technologies, Brian Armstrong of Coinbase Global, and Arash Ferdowsi of Dropbox.
Rafael Stark says that the company’s market share remains small among Brazil’s corporate banks by various indicators. At the same time, he noted the potential for growth in this direction.
Currently, the startup does not have a banking license, but it can issue loans without its own cash on hand. In 2024, the company plans to increase marketing expenses. This solution was announced after several years of keeping a low profile while building the product.
Rafael Stark notes that the startup allows customers to automate time-consuming tasks, including billing and payroll. According to him, companies managing a large number of transactions can misuse information and lose a lot of money in case of a low level of organization. The startup founded by Mr. Stark allows firms to be more efficient. A team of 30 people who perform tasks manually and make mistakes can be reduced to about five employees to do the same job. This is the opinion of Raphael Stark, implying the possibilities of automation.
Bruno Diniz, managing partner at Spiralem consulting firm, says that the startup’s focus on helping other technology companies and the ability to adapt solutions for customers is an advantage compared to the products of large Brazilian banks. According to him, Stark Bank has managed to find a very interesting niche. He noted that the startup, after creating a client solution for one player, replicates the corresponding product and offers it to other consumers.
As we have reported earlier, N26 Leaves Brazil.
