Savings and investment app Chip hits quarterly profit as it begins latest crowdfund campaign

Chip is the latest fintech to say it is has become profitable, a status which fintechs are increasingly yearning to achieve.
Savings and investment app Chip hits quarterly profit as it begins latest crowdfund campaign

UK savings and investment app Chip has made its first profitable quarter, it says, as it kicks off another crowdfunding campaign.

Chip’s co-founder and marketing director Alex Latham posted select Chip financial figures on LinkedIn.

Latham said UK-based Chip began the year with £27 million in Assets Under Administration (AUA), which had now ‘smashed past” the £3 billion mark, he said.

“Not only that but we have doubled our active user base and had our first profitable quarter,” adds Latham.

According to Companies House figures, Chip Financial made a pre-tax loss of £15 million in the year ending December 2022, compared to a loss of £14.3 million the year before.

As of the year ending December 2022, Chip says it had over 580,000 users and its average number of employees was 119.

Chip, which has 27,000 shareholders, is a prolific user of crowdfunding to raise money.

Latham says:

“Our crowd shareholders are our army of advocates and the heartbeat of the business.”

On its latest crowdfund, which is taking place on Crowdcube, he said he expected it “to be a big one”.

According to Crunchbase, Chip has raised £47.5 million. It last raised £3.5 million last year via Crowdcube.

In April this year, it hired former tax manager Georgina Silvester as chief operating officer.

According to AltFi, Chip last year raised subscription fees on its premium membership account ChipX.

Tech.eu reached out to Chip for comment.

Lead image via Facebook.

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