Stakk Secures $1M Capital, R-DBX Acquisition Generates $1.6M Revenue in 2024
Stakk Limited has marked a pivotal quarter with the acquisition of US fintech R-DBX, generating $1.6 million in revenue, and secured a $1 million working capital facility to fuel its Embedded Finance growth strategy.
- Acquisition of US-based R-DBX completed, generating $1.6 million revenue in 2024
- R-DBX rebranded as Stakk Technologies, expanding US Embedded Finance footprint
- Secured $1 million working capital facility from Relentless Fintech Partners
- Pipeline of major US and Australian brands expected to close deals in Q3
- Company rebranded from Douugh Limited to Stakk Limited to reflect B2B focus
Strategic Acquisition Bolsters US Market Presence
Stakk Limited (ASX:SKK) has taken a significant leap forward in its Embedded Finance ambitions by completing the acquisition of Radical DBX, Inc. (R-DBX), a US-based B2B Embedded Banking services provider. The acquisition, finalized late December 2024, brings with it an established client base and an annual recurring revenue stream of $1.6 million for the 2024 calendar year, albeit unaudited.
Rebranded as Stakk Technologies, Inc., the US arm now positions Stakk to serve leading fintechs, banks, and credit unions across the United States, marking a critical expansion beyond its Australian roots. This move aligns with Stakk’s broader strategy to embed financial services seamlessly within business operations, leveraging its Banking-as-a-Service platform.
Capital Injection Supports Growth Trajectory
In tandem with the acquisition, Stakk secured a $1 million working capital facility through a convertible loan agreement with Relentless Fintech Partners, Inc., a strategic US fintech investor. This infusion of capital is designed to underpin Stakk’s immediate growth objectives, providing the financial flexibility to scale operations and accelerate client acquisition efforts.
Despite some operational challenges in Q2, including a system outage and suspension of loan originations that impacted cash receipts from the Douugh App, the company’s focus remains firmly on expanding its Embedded Finance offerings. Increased investment in research and development, particularly to evolve its multi-tenanted platform capabilities, signals a commitment to innovation and scalability.
Rebranding Reflects B2B Growth Focus
Reflecting its strategic pivot, the company has officially changed its name from Douugh Limited to Stakk Limited. This rebranding underscores its transition from a consumer-facing fintech to a B2B Embedded Finance provider, aiming to capitalize on the growing demand for integrated financial services within business ecosystems.
Stakk’s pipeline is reportedly robust, featuring well-known brands in both the US and Australian markets, with expectations to close several deals in the upcoming quarter. This momentum suggests that the company is successfully leveraging its expanded capabilities and capital resources to capture new market opportunities.
Financial Position and Outlook
Financially, Stakk ended the quarter with $429,000 in cash and cash equivalents, supplemented by an undrawn $1.29 million financing facility. Operating cash flow was positive at $695,000 for the six months to December 2024, indicating improving operational efficiency despite the transitional challenges.
While the revenue from the R-DBX acquisition is unaudited and the full impact of the rebranding remains to be seen, Stakk’s strategic moves position it well to capture a growing share of the Embedded Finance market. The company’s ability to integrate R-DBX’s operations and convert its sales pipeline into tangible contracts will be key to sustaining this growth trajectory.
Bottom Line?
Stakk’s acquisition and funding milestones set the stage for a transformative phase in its Embedded Finance journey, with market watchers keenly awaiting Q3 deal closures and integration progress.
Questions in the middle?
- How will Stakk integrate R-DBX’s operations and client contracts to maximize revenue synergies?
- What impact will the rebranding have on Stakk’s market perception and B2B client acquisition?
- How effectively can Stakk leverage its $1 million working capital facility to accelerate growth?
