Chip posts first quarterly profit after bumper 2023 growth

UK wealth app Chip has recorded its first full profitable quarter.

Chip, which launched in 2017, saw revenue in the nine months to September hit £10.97m, up from £1.07m in the same period of 2022. 

The growth, which nudged the fintech out of the red in the third quarter of 2023, has been helped by deposits growing to more than £3bn, and active users soaring by more than 150 per cent.

Over this period it clocked up £2.8bn of net cash deposits, while active monthly users now at 215,000 accounts. It now has 790,000 registered users. 

Its annual recurring revenue, however, hit £23.7m in Q3 2023.

“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,” Simon Rabin, CEO of Chip said.

While the profitable numbers are nine months shy of a full year, Chip's move into the black chimes with a growing trend of profitability among UK fintechs.

“The entire team at Chip are ready and eager to expand the business, and we have the talent, product and technology ready to take it to the next level, bring in billions of deposits and ultimately build the wealth app for our generation. It’s safe to say the atmosphere at Chip right now is electric,” he added.