Bezos-backed Brazilian fintech doubles profits while conserving cash

Bezos-backed Brazilian fintech doubles profits while conserving cash

Stark Bank, one of the few Latin American startups backed by Jeff Bezos’ family office, is generating profits from its business of helping companies manage payments, while leaving the cash raised from its financing rounds almost intact.

In 2023, the São Paulo-based company managed 155 billion reais (US$31 billion) in payments, three times more than the previous year, while more than doubling its profit to US$71.5 million netsaid its founder, Rafael Stark in an interview in which he revealed the 2023 financial results for the first time.

The startup, which helps businesses process payments, invoices and accounts receivable, is focused on gaining domestic market share from large corporate bankssaid Stark, owner of 38% of the company. Its list of around 600 clients includes Gol Linhas Aéreas Inteligentes SA, Localiza Rent a Car SA, Cia Ultragaz SA and other startups such as Loft and QuintoAndar.

“While many technology companies are trying to stop losing money, we are seeing high levels of profitability,” said Stark, 35. “There is no need to raise more money and dilute my stake. It is better to grow and create much more value later.”

Series B

In its 2022 Series B round, Stark raised $45 million from investors including Bezos Expeditions — the family office of the founder of Inc. — and Ribbit Capital at a valuation of $250 million. Previous investors included Fabio Igel of Monashees Capital, Stewart Butterfield of Slack Technologies Inc., Brian Armstrong of Coinbase Global Inc. and Arash Ferdowsi of Dropbox.