London-based fintech firm Payhawk has disclosed significant financial losses for 2023.
- Despite an impressive revenue increase, Payhawk reported a loss of €32m (£26.8m), marking an 80% rise from the previous year.
- The firm attributes these losses to heightened administrative and operational costs, driven by workforce expansion and marketing investments.
- Revenue growth saw figures soar from €5.8m in 2022 to €12.6m in 2023, with gross profit reaching €9.7m.
- No dividends were dispensed, underscoring the financial strain despite expansion efforts.
London-based fintech company Payhawk has revealed a considerable financial setback, reporting a loss of €32m (£26.8m) for the fiscal year ending in December 2023. This figure represents an 80% increase compared to the prior year and occurs despite a substantial rise in revenue.
Payhawk’s revenue has more than doubled, increasing from €5.8m in 2022 to €12.6m in 2023. Despite this encouraging revenue boost, the company’s losses reflect significant administrative and operational expenditures. These expenses were largely due to a rising headcount and intensive marketing campaigns, as confirmed by the company.
The year’s financial outcome, as detailed in the director’s report, was described as “marked by unparalleled achievements” and “nothing short of extraordinary,” despite no dividends being distributed in 2023. Gross profit for the firm reached €9.7m, yet the financial pressures remained evident.
Payhawk’s capabilities include management of corporate expenses, invoices, and company cards, attracting clients such as Microsoft, QuickBooks, and Oracle NetSuite. The company maintains a presence in London, Sofia, Berlin, and Barcelona, further reflecting its international ambitions.
Investors have shown considerable interest, with Payhawk securing a $112m (£84.5m) Series B funding round in 2021 led by Greenoaks, a Silicon Valley-based investor known for backing companies like Gorillas, Robinhood, Stripe, and Checkout.com. This round expanded with an additional $100m investment in February 2022, including Lightspeed Venture Partners in the consortium.
The financial losses underscore Payhawk’s challenges balancing revenue growth with the costs of expansion and marketing efforts.
