Exclusive: Curve tells investors it’ll reach profitability by year-end

Card consolidator Curve has told its investors that 2023 is shaping up to be the year it reaches profitability.

In a note to Curve’s crowdfunding investors last week, seen by AltFi, the fintech said it would “reach an EBITDA positive position before YE 2023”, although this comment was hedged with the line “if we keep going the way we’re going”

The company says its upcoming milestone is due to some significant work done on improving Curve’s transaction margins, which increased by 3.5x in Q4 2022.

Written by CEO and founder Shachar Bialick, the note explains how the business made a “sharp turn” towards profitability in 2022 and this “turned out to be one of the best decisions we ever made.”

“With a laser focus on maximising revenue and streamlining costs – we’ve become a stronger, more cost-efficient business. In less than a year, we’ve cut our burn in half and carved out a shortcut to profitability. In fact – we’re almost there.”

The note also revealed that Curve’s customer base grew from 3.3m to 4.3m in 2022 with spending up 60 per cent year-on-year to £3.2bn, all while customer acquisition costs fell.

Curve ended 2022 at a £28m annual revenue run-rate, up 70 per cent YoY.

Shachar also wrote that the US would remain a lower priority until Curve’s core markets turned profitable, and “we expect to open the floodgates and begin onboarding customers to our US market towards the end of 2023.”