UK wealth app Chip reports Q3 2023 as its first profitable quarter

UK wealth app Chip recently released its financial report for the third quarter of this year, marking it as its first full profitable quarter in 2023. The company reported seeing strong cash inflows while its user base started increasing rapidly.

Chip’s success comes from the launch of savings accounts

Chip comes as the latest in a long line of companies that have seen a sudden surge in both active users and cash inflow as the market recovery finally commenced. The company was launched in 2017, and since then, it has attracted over 790,000 registered users.

Between January and September of this year, it attracted £2.8 billion of net cash deposits, while the number of active users per month surged by 164%, to the height of 215,000 accounts. The firm also reported holding over £3 billion in customer deposits.

Commenting on the changes in figures and increased profitability, Chip claims that both were driven by the launch of a new service — savings accounts. The company believes that consumers needed to capitalize on increasing interest rates, and this finally provided them with a way to do it.

Over the nine-month period ending in September, Chip’s revenue climbed up to £10.97 million total, which is a massive increase from only £1.07 million seen during the same period last year, in 2022. As for the annual recurring revenue, Chip reported a figure of £23.7 million in Q3 2023, representing an impressive 922% increase on a year-over-year basis.

Moving forward, the company has a plan to build on the success seen so far by building and launching new 6-month and 12-month fixed-term deposit options. In addition to that, it will offer a Cash ISA with highly competitive rates.

Chip has been progressing since May 2023

The company’s CEO, Simon Rabin, stated that the results seen in the Q3 report are a momentous achievement. For Chip, they represent a major turning point in both the sustainability and success of the business. While this is its first profitable quarter, Chip also reported its first profitable month earlier this year, in May. Since then, it has gone from strength to strength, as Rabin stated.

He also added that the new, mature revenue-stage of the business came ahead of schedule, but even so, it presented Chip with major new opportunities that the company does not intend to waste.

Rabin concluded his statement by saying: “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.”