Stripe-Backed TrueLayer Achieves Revenue Milestone, but Losses Escalate

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TrueLayer Achieves Record Revenue Growth Amid Restructuring and Continued Losses

TrueLayer, the UK-based fintech backed by Stripe, has reported a near 40% increase in pre-tax losses for 2023, despite achieving its highest revenue growth to date. The company’s financial filings with Companies House show pre-tax losses of £55.6 million, compared to £40.3 million the previous year. However, this rise in losses comes alongside a remarkable tripling of revenue year-on-year, reflecting the company’s ongoing expansion in the payments sector.

The latest financial report also highlights TrueLayer’s efforts to streamline its operations. The company undertook significant cost-cutting measures in 2022, including a 10% reduction in its workforce. As of 2023, TrueLayer employs 346 staff, down from 434 in the previous year.

Despite these challenges, the fintech achieved substantial growth across key financial metrics. Gross profit more than doubled from £2.96 million in 2022 to £7.78 million in 2023, while revenue surged from £4.1 million to £12.4 million. A spokesperson for TrueLayer commented on the results, stating, “2023 was a year of remarkable growth for TrueLayer, with revenue increasing by 200% as we solidified our position as a European market leader.”

TrueLayer has continued to make significant strides in the payments industry. It became the first company to surpass 1 million variable recurring payment transactions per month and saw its Payout product grow transaction volume by more than 20 times across UK and European markets. This growth underscores TrueLayer’s ability to expand its reach beyond the UK, where it has also deepened its partnership with Stripe, becoming the payment giant’s open banking partner in the region.

In line with its operational focus, TrueLayer reduced operational losses from £61 million in 2022 to £54 million in 2023, reflecting improved cost management while pursuing its growth ambitions.

TrueLayer remains a key player in the open banking space, helping to drive the adoption of account-to-account (A2A) payments, which offer a more direct and cost-efficient alternative to traditional card networks. Open banking has been viewed as a disruptive force in the financial technology sector, with competitors such as GoCardless and Tink also making waves in the market.

While A2A payments have not yet achieved widespread global adoption—capturing just 7% of global e-commerce transaction volume according to recent reports—the technology remains a promising area for future growth. In contrast, digital wallets and credit cards still account for the majority of global transactions, with 50% and 22% market share, respectively.

Despite continued financial challenges, TrueLayer’s 2023 performance underscores its potential as a leader in open banking and payment solutions across Europe.

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