Stakk (ASX: SKK) has signed a three-year contract with US fintech SoFi Technologies for the delivery of its Stakk IQ modular embedded finance solution.
The solution will use mobile image capture, image authentication, optical character recognition, and document and data orchestration capabilities to power certain deposit acceptance features for over 12.6 million customers via the SoFi app.
Revenue will consist of a monthly platform fee plus usage-based transaction fees and will begin flowing to Stakk in December, after which the company expects it to rapidly accelerate for the remainder of the 2026 financial year.
Increased ARR Forecast
The SoFi agreement combines with a ++recent contract with US-based digital banking platform Chime Financial++to add approximately $4.7 million to Stakk’s annual recurring revenue (ARR), positioning the company to significantly exceed the previous ARR forecast of $8 million by year end.
“The consistent growth in our ARR this calendar year has been quite phenomenal, and demonstrates a clear need for the ‘boring but essential technology’ we offer to a range of clients from small financial institutions and global brands to multi-national telcos and beyond,” chair Nikhil Ghanekar said.
“To be selected by SoFi after a rigorous and comprehensive selection process is a genuine honour, and presents an exciting opportunity for us to collaboratively innovate with one of the world’s best fintechs.”
He said while not all contracts were as significant as the SoFi deal, they all contribute to a “robust and diversified” revenue stream which meets Stakk shareholder expectations.
Branch-less Business Model
With a current market capitalisation of approximately $51 billion, fintech giant SoFi specialises in delivering a range of financial products and investment and banking services under a branch-less business model.
The company – which also provides a technology platform to other financial institutions – is known for its integrated approach to financial services, aiming to keep customers within its digital ecosystem for all their banking needs.
SoFi is the official banking partner for the National Basketball Association, and the premium sponsor of SoFi Stadium in Los Angeles.
The parties can continually extend the agreement by mutual consent at the expiration of the initial period for subsequent 1-year terms.
