PayPal-backed UK fintech Modulr has reported a reduction in annual pre-tax losses of £11m in 2024, as it targets US expansion and pulls back from working with crypto clients.
Modulr provides white-label payment infrastructure for businesses, calling itself an “embedded payments platform”. Modulr, which has an Electronic Money Institution (EMI) licence and employs over 300 people, provides payment services for the likes of Sage, Wagestream and HMRC. Modulr is backed by PayPal's VC arm.
Financial results for Modulr Holdings show pre-tax losses of £11m in the year ending 2024, a reduction compared to losses of £13.9m the year previous. Revenue came in at £52.8m, compared to £47.9m the previous year. Modulr says its losses were funded by its 2022 £83m Series C funding raise and that Modulr remained “well funded” at year-end 2024, with £31m of cash.
Modulr said that during 2024, it focused on client sectors of travel, merchant payments and lending but “ceased active marketing” into non-focus sectors, including crypto, remittance, and consumer banking. Modulr is understood to have previously worked with crypto outfit Ripple but it's unclear how many crypto clients it had. It does, however, have some crypto clients, it said.
It cited the “increasing complexities, risks and costs” of operating in these sectors as the reason for pulling back. Additionally, it cited new Consumer Duty rules, aimed at setting strict standards of consumer protection in financial services, and Authorised Push Payment rules, which it said “disproportionately impact those sectors”.
Separately, the UK fintech said it had made its first international move, securing a contract with a “major" US financial technology firm. Last year, Modulr acquired UK-based accounts payable fintech Nook.
Modulr processes over 200m transactions and over £100bn of payment value on its platform, on an annualised basis. It has over 240 enterprise and over 4,000 SME customers.
Modulr said: "Our statutory group accounts for 2024 show double-digit growth and a strong balance sheet. We are growing strongly in 2025 and are on track to be profitable.
"We are scaling across a number of verticals and have seen particular growth in payroll, accountancy, travel and lending. In addition, we continue to serve some customers in other sectors, including crypto companies, remittance firms and consumer banking, which continue to become a declining proportion of our revenue."
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