Stash, the fintech giant valued at $1.4 billion, has appointed Steven Hodgeman as its new Chief Financial Officer (CFO) in a strategic move to bolster financial discipline and drive growth. In an exclusive interview with Hodgeman and Stash CEO Liza Landsman, key insights were shared regarding Hodgeman's role, Stash's unique market positioning, and the potential trajectory of the company, including the possibility of going public.
Hodgeman, who joins Stash from global delivery service Getir, expressed his enthusiasm for joining a company focused on helping the average individual in the U.S. build and create wealth. Stash, with its emphasis on long-term wealth building and micro-investing, distinguishes itself in the competitive landscape of retail investing apps. With approximately 2 million subscribers, the platform charges users $3 or $9 a month, depending on their chosen services and account types, and offers a robo-advisor feature.
Stash's financial standing received a significant boost in a 2021 venture round, raising $125 million at a valuation of $1.4 billion. In October of the same year, an additional $40 million was raised to scale the business, with prominent investors such as T. Rowe Price and LendingTree backing the company.
Landsman, at the helm of Stash since February 2023, has been assembling a diverse and experienced C-suite, with Hodgeman joining as CFO, CMO Jackie Stern from E-Trade and Citibank, CTO Chien-Liang Chou from Dave and Flexport, and chief experience officer Shannon Allmon from Venmo and PayPal.
The appealing trajectory of the company influenced Hodgeman's decision to join Stash. Describing Stash as an asset-light, recurring revenue model with rapidly growing margins, Hodgeman sees the company on a path to achieving profitability in the near term.
Landsman, reflecting on Hodgeman's appointment, emphasized the importance of a CFO who brings a keen eye for financial discipline and supports the company's growth objectives. The diversity of the leadership team, combined with their collective expertise, aligns with Stash's commitment to providing subscribers and customers with financial security through healthy choices.
When asked about the possibility of Stash going public, Landsman indicated it is "one of several options available," highlighting the alignment between preparations for an IPO and building a sustainable, profitable, generational business.
In defining the CEO-CFO partnership, Hodgeman said, “I think the CFO is the copilot who's sitting there and really making sure that every decision is made and has financial discipline and accountability tied to it. CEOs oftentimes need a sparring partner, someone who can really help them think inside and outside the box.” While Landsman values a CFO as "someone who both challenges and advances my thinking and that of the whole senior leadership team.
As Stash continues to evolve under the leadership of Hodgeman and Landsman, the fintech firm remains poised for further growth and innovation in the dynamic landscape of digital finance.
