Payment firm StoneCo has inked a definitive investment agreement with Brazilian digital lender Banco Inter.
Under the agreement, Stone will invest up to $471m (BRL 2.5bn) in the digital bank. The firm is expected to own a stake of up to 4.99% in the digital lender after the investment.
The investment will be made through a Follow-On Public Offering conducted by Banco Inter, in which Stone will act as a cornerstone investor at a fixed price of $10.87 (BRL57.84) per share.
The firm will have the right of first refusal in the case of change of control of Banco Inter, for a period of six years. In addition, it will have the right to join the bank’s board of directors with one seat out of nine.
SoftBank-backed Banco Inter offers a suite of banking, marketplace, credit, insurance, investments products and services to individuals. It had 10.2 million users as of 31 March 2021.
Stone said it is working with Inter to explore and engage in partnership opportunities aimed at bringing Inter consumers to Stone merchants.
Both parties are also looking at ways to maximise the value proposition for both Inter’s consumer and Stone’s seller ecosystems.
This includes plans for connecting Stone merchants to InterShop with the aim of promoting the digitisation across Stone merchant base and offering an omnichannel journey for Intershop consumers.
The companies are also planning to facilitate a seamless mobile payment experience between Inter consumers and Stone merchants, online and offline.
They also plan to combine their respective product and payment technology capabilities to value proposition to Stone and Inter client base.
Other plans include utilising Inter’s funding capabilities to improve efficiency in Stone’s working capital offerings and providing Inter clients access to new investment opportunities in fixed income, through the offering of FIDCs.
Meanwhile, Banco Inter has separately announced plans for a Nasdaq listing. It intends to list its shares on Nasdaq as Inter Platform.