Fintech firm TrueLayer recently shared its FY2023 report.
TrueLayer has reported £12 million of revenue and £55 million in total losses for this financial period.
Truelayer is Europe’s open banking network, enabling service providers to onboard users, accept money and carry out payouts within a few seconds. Its live across 21 different nations and works with firms like Revolut and Coinbase, so if you’ve used these Fintech apps, then you’ve also used Truelayer.
TrueLayer claims 10 million users; has secured $250m+; and also reported a $1bn+ valuation.
Truelayer just released its latest annual accounts, which show a thriving business growing rapidly but with substantial net losses.
Truelayer reported £12m of annual revenue (+248% YoY).
TrueLayer also reported £55m of losses before tax (vs £40m in 2022).
For every pound in revenue that TrueLayer is making it is also losing a very significant £4.60.
Profitability for TrueLayer like all businesses is clearly a key focus area and major priority at the company as they have lowered headcount from 434 in 2022 to 346 in the current year.
At the end of lastyear, TrueLayer had £51 million cash in the bank (less than 1 year runway), which means obtaining more cash should be a key priority.
Truelayer last (publicly) raised funds in 2021, when it acquired $130m at a $1bn valuation off of £2.6m of revenue which is notably a multiple of 300x.
Truelayer is an innovative UK fintech pavong the way forward for open banking across European market.
However, it seems like its finances have really gotten out of control, and with financial results like these it will be quite challenging to convince VCs to inject more capital into the venture.
Over the years, many new Fintech ventures have been launched without the adequate market research required to introduce new business models. This has led to major losses for investors who could have been expecting sizable returns. For these reasons, it’s always best to do thorough research and figure out whether certain products and services are really needed and which markets / consumers may require them the most (if at all).
