Chip, the digital savings account, has announced it’s raising a growth investment round from the crowd and institutions in the coming weeks.
Having proven that it can grow revenues 500% and create positive growth margins, the fintech now intends to raise significantly more capital. The new round of funding will enable the acceleration of all growth activities across marketing, product and technology. Chip’s longer-term ambition is to raise £100 million in the next 24 months. In the past year, Chip has proven it can create a sustainable business model through the pandemic as it saw an explosive growth in revenue. The company achieved positive growth margins for the first time in August 2021 whilst its revenues increased 500% since December 2020.
In the past year Chip has;
- Grown the total amount of saves processed to over £600 million.
- Achieved daily deposits in excess of £5 million.
- Had the average user balance increase by 545% in the last year, from £459.35 in September 2020 to £2,961.03 in September 2021.
- Grown its user base by more than 60% to over 400,000.
- Launched ChipX, Investments with funds powered by BlackRock, market-leading Chip+1 account, and the best easy-access cash deposit rate.
- Doubled the size of its team, welcoming enormous talent and leadership to its engineering department.
As part of the crowd component of its latest round, Chip has launched pre-registrations for the upcoming Crowdcube campaign. The company saw over 25,000 people register their interest for its previous round in September 2020, and expects a significant increase in pre-registrations this year.
Chip is one of Europe's most successfully crowdfunded companies, and its 17,000-strong shareholder community is one of the largest in the UK's fintech scene. The company expects to expand its community even further as a result of the upcoming round.
Simon Rabin, CEO and Founder of Chip, commented: “Having focussed for the past year on adding returns products to Chip, the growth of our revenues, and optimisation of our unit economics, this round of investment is a strong endorsement of the strategy we pursued in 2021.”
“We have ambitions to take Chip global, and this round is the start of an aggressive growth stage as we work towards becoming the UK's first fintech savings unicorn. It represents a fantastic validation of our strategy over the past year, cementing our plans to expand Chip across Europe and rocket our valuation and shareholder value much further.”
“I firmly believe in the power of long-term sustainable growth”,
Simon continued. “Far too often companies focus on short-term profitability which I think is a massive mistake. Our goal at Chip is to build the best savings app in the world, and it's not something you achieve overnight. We made immense progress in the past year and now plan on building upon it, aggressively. I am thrilled to offer our community an opportunity to join our journey as we prepare to go big, and go global.”
