Despite doubling its revenue, Payhawk faced a substantial loss in 2023, marking a challenging period for the fintech company.
- The London-based firm’s losses rose by 80% compared to the previous year, amounting to €32m (£26.8m).
- Payhawk attributes these increased losses to heightened administrative costs and strategic marketing investments.
- While experiencing financial losses, Payhawk’s revenue grew to €12.6m, indicating some business expansion.
- During this extraordinary year, no dividends were distributed as the company navigated its financial landscape.
The London-based fintech company Payhawk reported a considerable loss of €32m (£26.8m) for the financial year ending December 2023. This loss represents an 80% increase from the previous year, highlighting a notable financial hurdle for the company.
According to Payhawk, the primary contributors to this financial loss were increased administrative and operating expenses, alongside depreciation and amortisation costs. The company significantly expanded its workforce, which contributed to the rising expenses. Additionally, substantial investments were made in marketing initiatives.
Despite the financial downturn, Payhawk succeeded in doubling its revenue, achieving €12.6m compared to €5.8m in 2022. This indicates a level of business growth and potential in the company’s operations, even amidst financial challenges.
The gross profit reported by Payhawk for the year was €9.7m. However, the company chose not to distribute any dividends in 2023, opting instead to reinvest in its business strategy.
The director’s report described the year as marked by ‘unparalleled achievements’ and ‘nothing short of extraordinary’. Payhawk, with offices in London, Sofia, Berlin, and Barcelona, is backed by major investors, having completed significant Series B funding rounds.
Although Payhawk faced increased losses in 2023, the company’s significant revenue growth reflects its operational potential.
