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Brazilian FinTech Stark Bank Tripled Payments Processed in 2023

Bezos-Backed Stark Bank Tripled Payments Processed in 2023

Stark Bank, a growing FinTech startup based in Sao Paulo, Brazil, reportedly caught the attention of investors including Jeff Bezos’ family office, Bezos Expeditions, which participated in the firm’s 2022 Series B round.

The company is one of the few Latin American startups backed by Bezos, Bloomberg reported Monday (Feb. 19).

In 2023, Stark Bank processed 155 billion reais (about $31 billion) in payments, marking a three-fold increase from the previous year, founder Rafael Stark told Bloomberg. The company also saw its net income more than double to 71.5 million reais (about $14.4 billion).

With a growing list of 600 clients that include well-known companies like Gol Linhas Aereas Inteligentes SA, Localiza Rent a Car SA and Cia Ultragaz SA, Stark Bank aims to capture market share from traditional corporate banks in Brazil, according to the report.

Stark emphasized the company’s commitment to profitability, noting that while many tech companies focus on raising money, Stark Bank prioritizes creating value for its stakeholders, the report said. The firm’s success has been attributed to its ability to streamline payment processing, invoicing and receivables for its clients, allowing them to automate tasks and increase efficiency.

Stark Bank also has customization and engineering expertise, with 30% of its employees being engineers, per the report. Despite not holding a formal banking license, Stark Bank has carved out a niche in the FinTech industry by offering tailored solutions to its clients.

Looking ahead, Stark Bank has plans for an initial public offering around 2029, the report said. Stark has set his sights on expanding the company’s reach within Brazil, particularly in Sao Paulo where most of the country’s major firms are located.

When reporting in 2022 that it received $45 million in a Series B funding round that included support from Bezos, Stark said the transaction would allow Stark Bank to increase its products portfolio.

PYMNTS Intelligence found that merchants in Brazil are offering a growing number of digital features to deliver frictionless and satisfying shopping experiences.

The country’s national instant payment system, Pix, is gaining traction and contributing to consumers’ digital shopping experience, according to the PYMNTS Intelligence report “2023 Global Digital Shopping Index.”