The company says the widening in losses for 2021 was due to marketing costs, product development and an increased headcount.
Digital savings and investment app, Moneybox, last month published its 2021 results that revealed it was loss-making for the sixth year in a row since launch.
Group revenues more than doubled, increasing by 101 per cent—from £2.5m in 2020, to £5.04m in 2021— in the year ending 31 May 2021, which Moneybox told AltFi was a result of adding over 200,000 new customers and existing customers having increased their deposit amounts.
As a result of those new customers and increasing deposits, Moneybox's total assets under administration increased 116 per cent to £1.99bn (up from £0.92bn in 2020).
However, the company’s EDITDA losses came in at £9.9m, a loss 42 per cent greater than the year before.
The company said that increased costs were to blame, due to higher spending on marketing activity and the firm's growing headcount—which doubled compared to 2020 numbers to over 170 staff.
Moneybox also told AltFi that costs associated with product development, such as the launch of its mortgage advisory service, Moneybox Mortgages, impacted its overall results.
“While the launch of Moneybox Mortgages was one key focus during 2021, other product launches of note included three accounts within savings and integrating a new range of funds available through our investment and retirement products,” said Cerrith Moore, finance director at Moneybox.
“During this period, we also undertook a complete redesign of our app.”
Moneybox’s substantial increase in cash assets for 2021 correlated with the issues of share capital the company had undertaken throughout the year. The fintech completed a series C funding round of over £30m in 2020 and bagged £7.1m of crowdfunding proceeds in the same year.
Having never turned a profit since its launch in 2016, the company is among the many loss-making fintechs which rely on venture capital investors to help them fund and grow the business.
Yet this has not seemed to deter investors or dint the company’s valuation, with Moneybox valued at $107m even before the cash from the 2020 funding rounds.
UPDATE 10-03-2022 - Added further details on Moneybox's assets under administration.
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