London-based funds fintech Curve near halved pre-tax losses after chopping administrative prices, in accordance with its newest monetary outcomes revealed Monday.
Based in 2015, Curve desires its pockets product to change into a so-called “Working System for Cash” which affords clients the flexibility to hyperlink their playing cards as much as cut up purchases into instalments, pay overseas with out overseas alternate charges and pay their payments with bank cards.
In monetary outcomes overlaying the year-end for 2023, Curve reported a pre-tax lack of £36m in comparison with £69.1m the yr earlier than. The corporate minimize its administrative bills from £57.2m to £36.1m throughout the identical time interval.
The fintech’s income grew from £22.1m to £26.7m. Greater than half of that got here from interchange charges from transactions, adopted by income from its subscription product and platform companies (reminiscent of taking a charge from retailers providing rewards to clients).
A give attention to fundraising
Curve’s auditors agreed with the administrators’ evaluation that the corporate will proceed to function for the foreseeable future. The fintech’s administrators do be aware, nonetheless, that additional fundraising will likely be required to maintain regular enterprise operations, making a “materials uncertainty which can forged important doubt on the group and firm’s capability to proceed”.
A Curve spokesperson advised Sifted: “The language (‘materials uncertainty’), is a regular auditing measure reflecting the truth that we’re a high-growth tech firm elevating capital to fund growth.”
The corporate disclosed that it raised £29.8m in fairness funding from new and present traders in 2024 in addition to £11.6m in debt from present traders in Might that yr. Curve is “actively engaged” in one other spherical of funding, the spokesperson stated, which it expects to conclude quickly.
Curve highlighted the additional cost-cutting measures it took in 2024, because the fintech eyes profitability in its subsequent annual outcomes. It paused its US operations in July 2024, the outcomes disclosed, two years after launching there.
“We stay dedicated to the US market and are laying the groundwork to make sure that once we scale there, we do it responsibly and with the appropriate partnerships,” a spokesperson stated.
Curve’s outcomes align the corporate with its fellow UK loss-making funds fintechs. Based on Sifted reporting, open banking funds firm TrueLayer and direct debit fintech GoCardless are but to succeed in profitability.
