The auditors for Curve have warned on the “material uncertainty” of its ability to continue operating over the next year as the firm battles to cut its losses.
The London fintech has slashed its headcount by more than a third as well as suspending operations in the US in an effort to reduce cash burn.
In a corporate filing published this week, auditors PwC said: “The group and the company require further capital injections within twelve months…to continue realising their assets and discharging their liabilities in the normal course of business.
“The directors forecast that the additional funding will be forthcoming, however this is not guaranteed.
“These conditions…indicate the existence of a material uncertainty which may cast significant doubt about the group’s and the company’s ability to continue as a going concern.”
Curve said it was “confident” of being able to raise more funds. A Curve spokesperson said the going concern warning was “a standard auditing measure reflecting the fact that we’re a high-growth tech company raising capital to fund expansion”.
The warning comes despite the fact that Curve raised more than £40m in fresh funding in 2024, of which £29.7m was from equity funding from new and existing investors and £11.6m was debt funding in the form of a convertible loan.
The company posted a pre-tax loss for the year ended December 2023 of £36m, down from its 2022 loss of £69m.
Revenue for the period rose around 20% – reaching £26.7m – and administrative expenses were cut more than a third, while cost of sales fell by just under a quarter.
Chief executive Shachar Bialick said the firm’s priority over the period was reducing its cash burn by “concentrating on key areas of operational efficiency”.
Over the period, the number of staff fell from 315 to 208, cutting staff costs by around 28%.
In 2024, Curve paused its US operations – started in early 2022 – though it aims to re-launch at an undecided future date.
Revenue in its UK business was by far the strongest, pulling in £16m, compared with £10.2m in Europe and £452,000 for the rest of the world.
The directors report also noted that the company would need to secure further fundraising to continue operations. The company was able raise £29.8m in equity funding and a further £11.6m in debt in 2024. In 2023, the company raised more than £133m in its Series C round.
Founded in 2015, Curve provides users with a digital payment wallet that combines all their debit and credit cards.
The company describes its platform as an “operating system for money”, offering flexible money management tools between various finance accounts.
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