UK-based fintech Curve has reported an operating loss of £37.9 million in its annual results for 2020, despite revenue increasing by over 80% year-on-year.
Curve’s operating losses grew from £6.5 million in 2018 to £28.5 million between November 2018 and December 2019, with 2020’s results marking another significant increase.
Although revenue was up 86% year-on-year, reaching £9.9 million, Curve’s cost of sales stood at £11.6 million, which led to a gross loss of £1.7 million.
However, the UK fintech’s gross margin improved in 2020, driven by growing premium subscription revenues which had higher margins than card transactions.
The firm also attributed half of its operating expenses to personnel costs after growing its workforce from 126 employees at the end of 2019 to 226 at the end of 2020.
Despite the figures, the company says the business “proved resilient” during the pandemic and exhibited “strong” growth in 2020.
The 2020 annual report and financial statement recorded a 57% increase in total payment volume thanks to new customers and online initiatives in the face of lockdowns.
Card transactions contributed two thirds of revenues and premium subscriptions one third, while platform products remained marginal, the company outlines.
The fintech, which combines users’ debit and credit cards into one app and a linked ‘smart card’, says its cash and cash equivalents increased to £65 million in 2020 and its net assets increased to £41.2 million, reflecting its Series C funding round undertaken during the year.