UK wealth app Chip has followed a number of mature fintech businesses in reporting its first full profitable quarter in Q3 2023, driven by strong cash inflows and rapid growth in its user base.
The business, established in 2017, attracted £2.8 billion of net cash deposits between January and September 2023 and saw its number of active monthly users increase 164% to more than 215,000 accounts. It now has 790,000 registered users, and holds customer deposits of more than £3 billion.
Chip says the results were driven by the launch of new savings accounts as consumers sought to capitalise on rising interest rates.
Revenue in the nine months to September was £10.97 million, up from £1.07 million in the same period of 2022. Annual recurring revenue reached £23.7 million in Q3 2023 - a 922% increase year-on-year.
The firm is looking to build on the success with the launch of new six- and 12-month fixed term deposit options, and a Cash ISA with highly competitive rates.
Simon Rabin, CEO of Chip, says: “These results are a momentous achievement and a turning point in the success and sustainability of the business. We reported our first profitable month in May and have since gone from strength to strength.
“This new, mature revenue-stage of the business has come well ahead of schedule and presented us with huge new opportunities."
CVhip joins the likes of ClearBank, Bunq, Klarna, Monzo, Tandem, PensionBee, Revolut, Zopa and Zilch, who have all discarded the growth at all costs mantra in the race for profits during a major funding downturn.