Shares in Australian technology minnow Stakk Limited (ASX: SKK) are up more than 500% for the week after the company revealed it had won new business from major online broker Robinhood Markets Inc (NASDAQ: HOOD).
Stakk shares were up more than 18% to 4.2 cents on Friday, but that followed a 500% jump from 0.6 cents to 3.6 cents on Thursday when the deal was announced, catapulting the company's market capitalisation to $74.7 million.
More than 300 million shares in the company were traded on Thursday and another 52 million on Friday morning, compared with the usual average trade volume of less than 5 million shares.
Stakk announced on Thursday it had secured a two-year master services agreement to deliver Robinhood a solution "encompassing its image capture, authentication, and transaction processing capabilities''.
Robinhood, best known for introducing a new generation of traders to the stock market, crypto and ETFs is, as part of the launch of Robinhood Baking, growing up alongside its customers, moving one step closer to becoming a full financial service company, along the likes of Fidelity, and Charles Schwab. Although the revenue Stakk will generate under this agreement is largely predicated on the success of Robinhood's new banking offering and is therefore unknown at this time, this Agreement is material to Stakk due to the size and scale of Robinhood, and their significant investment in and commitment to their new initiative.
Stakk Chief Executive Officer Andy Taylor said the company couldn't be prouder to add Robinhood as a client.
"The confidence Robinhood has placed in us, at this stage of our journey into Embedded Finance, is a tremendous vote of confidence in what we do and how we deliver," Mr Taylor said.
The agreement can be renewed by mutual consent for subsequent terms of one year.
Second contract win this month
Stakk also announced earlier this month that its agreement to provide services to New York-based Current Financial Inc had been renewed. Stakk will continue delivering a solution to Current for its image capture, authentication, and transaction processing.
Current is a fintech company founded in 2015 that offers alternative banking services through its platform, Current Core.
Stakk said Current aims to deliver services such as faster direct deposits, pay cheque advances, and cryptocurrency services, and has partnerships with firms such as Choice Financial Group and Cross River Bank.
Stakk, previously known as Douugh, said the agreement with Current was worth about $280,000 in annual recurring revenue.
