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Gen Z fintech Cleo more than doubles revenue

Revenues at London-based Cleo more than doubled in 2023 as the Gen Z-focused financial health startup reduced costs and grew subscribers.

Cleo reported a turnover of $65.9m in 2023, its latest accounts show, marking a 121% year-over-year increase.

Cleo said it reached an adjusted break-even by December 2023, citing a “higher conversion and utilisation” of its paying products and “improved subscriber retention”.

The British firm reduced net losses by 31% over the same period to $17m.

Founded in 2016 by Barney Hussey-Yeo, Cleo has created an AI chatbot that is used by millions of young people to help them avoid overdrafts, build credit, and budget better. The majority of Cleo’s users are located in the US.

In 2022, the financial assistance app raised $80m at a $500m valuation. Seb Johnson, founder of startup financials platform Growth Hub, said that Cleo’s latest results “confirm its future unicorn status”.

"Shifting to profitability whilst still managing to double our growth each year has been the largest and most substantial challenge we’ve overcome," Hussey-Yeo said in a previous interview.

The company's focus on the US market - a notoriously difficult market to break into - has been paying off. It derives most of its revenue from the US. In total, it has more than seven million users, as of October 2023.

Cleo has raised $138m from investors since its launch, according to Dealroom data. Investors include Sofina, a listed tech investor who has backed companies such as Typeform, and Balderton Capital.

Read more: Cleo boss: Startups, stack your board with ex-founders

The post Gen Z fintech Cleo more than doubles revenue appeared first on UKTN.

This post first appeared here: https://www.uktech.news/fintech/cleo-revenue-financials-20240704

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