Cashplus boosts sales and enjoys unicorn status

By Roger Baird on 22nd July 2019

Challenger Banks

The banking services firm plans to grab a 10 per cent share of business services accounts 2024.

 Cashplus boosts sales and enjoys unicorn status
Image source: Company supplied

Cashplus said its annual revenues jumped 19 per cent in the same year as the banking services group was named a unicorn.

The London-based digital firm, which offers small business and consumer accounts, said its annual sales jumped to £45.6m in the year to the end of March. 

The fintech, which has 1.6 million accounts, added its operating profit for the period came in at £3.2m, its eighth year of returning an operating profit.

Cashplus was named as a unicorn - a private business valued at more than $1bn - by boutique investment bank Keefe Bruyette & Woods earlier in the period with a valuation of $1.002bn.

The business claims a 7 per cent share of UK business accounts, and “expects to comfortably hit 10 per cent share by 2024”. 

 

Banking licence

The fintech is in the final stages of applying for a full UK banking licence, and if it gains approval, plans to “rapidly grow” its small business unit using more than £250m of lending capital, currently held as safeguarded funds under its e-money licence.  

The business, founded in 2005, competes against such UK-based fintechs as Monzo, Starling Bank and Atom Bank.

Cashplus added its underlying profit after tax was £100,000 over the last financial year, while reporting a £1.1m loss. The business blamed the loss on £1.3m of costs it spent during the period preparing its banking licence.

Cashplus chief executive Rich Wagner (pictured) said: “We’re on track to submit our final bank licence application in the next month, we’ve continued to improve and expand our products with more industry firsts, and we’re delighted to be recognised as a unicorn, when measured like-for-like against peers.”

During a busy year, the firm said it issued Britain’s first green bank card made from “a new type of degradable PVC”.

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