Though Europe has emerged as a hotspot for fintech innovation and the creation of billion-dollar startups in the sector, profitability remains elusive for many.
According to an analysis by Sifted, a media focused on the European startup ecosystem backed by the Financial Times (FT), only 13 of Europe’s 66 fintech unicorns are profitable fintech companies.
This showcases that many of these startups are prioritizing rapid growth over sustainable revenue. These companies are also facing high customer acquisition costs, intense competition, and the challenge of monetizing services in markets where consumers expect free or low-cost financial tools.
The following 13 fintech unicorns, however, are bucking the trend, standing out from the crowd for achieving profitability and demonstrating viable business models.
Europe’s 13 profitable fintech unicorns
Revolut (UK)
2023 pre-tax profit: £438 million (€505 million)
Revenue: £1.8 billion (€2.1 billion)
Founded in 2015, Revolut is a UK-based global fintech and digital bank offering banking services to individuals and businesses. The company offers free and subscription-based digital banking services, primarily through a mobile app. Features include domestic and international bank transfers, debit cards, credit cards, a stock and cryptocurrency exchange, as well as savings accounts and loans. Revolut serves more than 45 million customers from more than 40 countries.
In 2023, Revolut delivered record performances, nearly doubling its revenue and reporting its third consecutive year of net profitability, with a 19% net profit margin. Group revenue increased by 95% year-on-year (YoY) to US$2.2 billion (£1.80 billion), with profit before tax standing at US$545 million (£438 million).
Starling Group (UK)
2023 pre-tax profit: £301 million (€352 million)
Revenue: £682.2 million (€808.6 million)
Founded in 2014, Starling Group comprises Starling Bank, the fully licensed and regulated UK bank, Engine by Starling, a software-as-a-service (SaaS) provider, and Fleet Mortgages, a specialist buy-to-let mortgage lender.
Headquartered in London with offices in Cardiff, Dublin, Manchester and Southampton, the group offers a range of limited personal and business banking services, serving over 4.2 million accounts, with 2.9 million active users. Meanwhile, Engine by Starling is growing internationally, with new clients being onboarded in Australia and Romania. Additionally, Fleet Mortgages increased its buy-to-let portfolio by 51% to £2.3 billion in 2023, contributing to the group’s overall success.
Starling Group achieved a 54.7% increase in pre-tax profits to £301.1 million for the year ending March 31, 2024. Revenue grew by 50.6% to reach £682.2 million, while total deposits were up 4% to £11 billion.
OakNorth (UK)
2024 pre-tax profit: £214.8 million (€255 million)
Revenue: £282.9 million (€335 million)
Founded in September 2015, OakNorth is a digital bank focused on serving and empowering the lower mid-market. The company offers loans, as well as business banking products, including current accounts, savings accounts, foreign exchange (FX) and payments, in addition to retail savings accounts.
OakNorth has provided about US$16 billion to these businesses across a wide range of sectors, contributing to the creation of 56,000 jobs and over 34,000 new homes across the UK and the US.
In 2024, OakNorth reported pre-tax profits of £214.8 million (US$271.6 million), up from £187.3 million (US$236.8 million) in 2023. OakNorth provided over £2.1 billion (US$2.6 billion) of gross new lending in 2024.
Bunq (Netherlands)
2023 pre-tax profit: €53.1 million
Revenue: €171 million
Founded in 2012, Bunq is a neobank in the European Union (EU), focusing on user-centric banking for location-independent individuals and businesses. The company provides multi-currency accounts, international bank account numbers, personal and business accounts, and a public API, serving more than 14 million users.
In 2021, Bunq secured EUR 193 million in the largest Series A round for a European fintech company to date, giving it unicorn status. In April 2023, the company announced its bid to enter the US market by applying for a banking license. It’s also pursuing an e-money institution license in the UK.
In 2023, Bunq reported a net profit of €53.2 million, compared to EUR 10.5 million loss in 2022. This marked the company’s first full year of profitability. Revenue reached €171 million in 2023, up from €74 million in 2022.
Klarna (Sweden)
2024 pre-tax profit: US$21 million (€19 million)
Revenue: US$2.8 billion (€2.5 billion)
Founded in 2005, Klarna specializes in online financial services. The company provides payment processing services for the e-commerce industry, managing store claims and customer payments. It’s widely known for its buy now, pay later (BNPL) solutions, which allow shoppers to delay or split payments for their purchases.
Klarna runs one of the largest commerce networks in the world, measured by the number of consumers and merchants. It serves approximately 93 million active Klarna consumers and more than 675,000 merchants in 26 countries as of December 31, 2024, and facilitated US$105 billion of gross merchandise volume in 2024.
Klarna’s revenue jumped 24% in 2024, growing to US$2.81 billion in the year ended December 31, up from US$2.28 billion a year earlier. The company reported a profit of US$21 million in 2024, compared with a loss of US$244 million the previous year.
ClearBank (UK)
2023 pre-tax profit: £18.4 million (€21.2 million)
Revenue: £111.35 million (€128.4 million)
Founded in 2015, ClearBank is a purpose-built, technology-enabled clearing bank. Through its banking license and intelligent, robust technology solutions, the company enables its clients to offer real-time payment and innovative banking services to their customers.
ClearBank serves over 250 clients, including major names such as Revolut and Wealthify, totaling more than 13 million financial accounts. In 2024, the company secured a license from the European Central Bank (ECB) and expanded into 11 new markets.
ClearBank reported pre-tax profits of £18.4 million in 2023, compared to a loss of £7.1 million in 2022. Total income grew 91% YoY to £111.3 million.
However, in 2024, the company swung a loss as the costs of European expansion took their toll on the firm’s bottom line. The implementation of ClearBank’s group structure, which includes its European entity, contributed to the overall decline, bringing its profits down to a pre-tax loss of £4.4 million.
Despite this, ClearBank’s UK business remained profitable for the second consecutive year, with pre-tax profit reaching £9.9 million.
Zopa (UK)
2023 pre-tax profit: £15.8 million (€18.7 million)
Revenue: £222 million (€260 million)
Launched in June 2020, Zopa is one of the fastest digital banks in the UK. The company provides a wide range of products, including unsecured personal loans, BNPL retail finance, point-of-sale (POS), car finance, credit cards, savings accounts, and tools aimed at improving financial management and health.
Zopa currently serves more than 1.4 million customers and has just over £3 billion of loans on its balance sheet. The company has attracted £5.5 billion in savings deposits.
Zopa achieved full-year profitability for the first time in 2023. The company achieved a pre-tax profit of £15.8 million for the financial year ending December 31, 2023, up from a pre-tax loss of £26 million for the year ending December 31, 2022. Total operating income for the same period to December 31, 2023 was £222 million, up 47.8% YoY.
Monzo (UK)
2023 pre-tax profit: £15.4 million (€18 million)
Revenue: £880 million (€1 billion)
Founded in 2015, Monzo is a British online bank offering a range of banking services primarily through a mobile app. The company provides users with products like checking accounts, savings pots, budgeting tools, instant spending notifications, and the ability to manage money on the go. It also allows customers to make international payments, manage their finances with ease, and access customer support directly through the app.
Monzo serves more than 11 million personal and business customers.
In 2024, Monzo achieved its first full year of profitability. Pre-tax profits totaled £15.4 million (US$19.6 million) in its 2023-2024 fiscal year, swinging to the black from a £116.3 million loss the year prior. The company posted revenues of £880 million for the full year, up from £355.6 million in 2022. That marked a more than twofold increase.
Bitpanda (Austria)
2023 pre-tax profit: €13.6 million
Revenue: €147.6 million
Founded in 2014, Bitpanda is a fintech based in Vienna, Austria. The company offers a platform that allows users to buy, sell, and manage a wide range of digital assets, including cryptocurrencies, stocks, exchange-traded funds (ETFs), precious metals, and commodities, targeting both beginners and experienced investors. It emphasizes accessibility, offering features like fractional investing, automated savings plans, and real-time portfolio tracking.
Bitpanda posted €13.6 million in pre-tax profit and €147.6 million in revenue in fiscal year 2023.
Bitpanda has 6 million users and more than 700 team members. Earlier this year, the startup secured a Markets in Crypto-Assets Regulation (MiCAR) license, unlocking new growth opportunities in the EU.
Bitpanda is reportedly considering a potential sale or initial public offering (IPO) in 2025. If a deal proceeds, the exchange could be valued at US$4 billion or more.
Lendable (UK)
Pre-tax profit: £10.5 million (€12.3 million)
Revenue: £56.3 million (€66 million)
Founded in 2014, Lendable is a technology-enabled investment and alternatives platform. The company’s mission is to create a more equitable and sustainable world through data and finance.
Lendable focuses on impact-driven alternatives, offering financing solutions to high-growth companies in pre-frontier, frontier, and emerging markets. It serves global investors through a mix of funds, co-investments, and proprietary technology.
To date, Lendable has disbursed over US$450 million. The startup has been recognized by its peers, debuting in 2020 on the ImpactAssets 50 Emerging Impact Management list. The company also made the IA 50 Manager list for both 2021 and 2022.
Lendable has been profitable since 2017. According to Sifted, Lendable recently reported a pre-tax profit of £10.5 million (€12.3 million) on revenues of £56.3 million.
Raisin (Germany)
2023 pre-tax profit: €1 million
Revenue: €158 million
Founded in 2012, Raisin is a leading platform for savings and investment products. The company connects consumers with banks in the EU, the UK, and the US, offering better interest rates to savers and efficient refinancing options to banks.
Raisin claims it has helped consumers earn over €2 billion in interest, with users typically building diversified savings portfolios across multiple products. It claims to manage over €60 billions from more than 500,000 active consumers.
In 2023, Raisin achieved profitability for the first time, almost doubling revenues to €158 million. The company reported a net profit of €1 million.
SumUp (UK)
2023 pre-tax profit: €783,000
Revenue: €188.1 million
Founded in 2012, SumUp is a British fintech company that provides simple and affordable payment solutions for small businesses. The company is best known for its portable card readers, which allow merchants to accept card payments in-person or online without the need for a traditional point-of-sale system. Its product suite includes invoicing tools, an online store builder, business accounts, and payment links, all designed to help entrepreneurs run their businesses more efficiently.
SumUp serves over 4 million merchants globally, with 1 million customers using the SumUp Business Account.
In 2024, SumUp processed over 1 billion transactions across more than 36 markets. The company is now focusing on scaling globally, recently expanding into Australia and deepening its presence in Europe and the Americas.
In 2023, SumUp posted revenues of €188 million, a rise of 26% compared to the previous year. However, pre-tax profits fell 29%, reaching €783,000, UK Tech News reported.
Trade Republic (Germany)
Pre-tax profit: Not disclosed.
Revenue: Not disclosed.
Founded in 2015, Trade Republic is a Berlin-based online broker and bank. The company provides a brokerage and savings platform, offerings savings plans, fractional trading of shares, ETFs, bonds, as well as derivatives and crypto. On top of that, customers benefit from the Trade Republic card with 1%“Saveback” on card payments.
Trade Republic serves 8 million customers across 17 European countries, and claims more than €100 billion in assets under management (AUM). This year, the company plans to continue investing heavily in infrastructure and expande access to national current accounts with local IBANs as well as local payment methods.
The FT reported in January 2024 that Trade Republic turned a profit for the first time in 2023 but declined to share additional financial information.
Featured image credit: edited from freepik
