Product details

StoneCo was a fintech that entered the market in 2014 with an initial focus in the payment solutions for SMBs. In 2018 it held the largest Brazilian initial public offering (IPO) on the Nasdaq, achieving a valuation of USD 9 billion at the close of the first day of trading. Its strategy was based on expanding from a pure payments business to a complete financial services platform for SMBs, which was labeled ABC (Acquiring, Banking, Credit). The company's rapid growth rate faced a setback when its credit operations expanded too quickly between 2020 and 2021. The company had granted loans to customers with weak financial guarantees in an unfavorable external scenario, during the pandemic, when stores were opening and closing due to lockdowns, and amidst a relevant change in the Central Bank´s regulation regarding implementation of the registry of receivables. As Chairman of the Board of Directors, Andre Street needed to consider whether the mistakes found in credit operations would not be repeated in other areas. Was StoneCo. running too fast? Was the Board of Directors properly guiding the company's growth strategy? This case explores the roles of the Board of Directors and its relationship with the top management team of the company.