Wealth App Chip Celebrates First Profitable Quarter

UK wealth app Chip recorded its first full profitable quarter in Q3 2023, following strong cash inflows and rapid growth in its user base.

The business, established in 2017, attracted £2.8 billion of net cash deposits between January and September 2023 and saw its number of active monthly users increase 164% to more than 215,000 accounts. It now has 790,000 registered users, and holds customer deposits of more than £3 billion.

Chip says these results were driven by the launch of new savings accounts on its wealth platform as savers sought to capitalise on rising interest rates. Revenue in the nine months to September was £10.97 million, up from £1.07 million in the same period of 2022. Annual recurring revenue (ARR) reached £23.7 million in Q3 2023 (July – September) – a 922% increase year-on-year.

Chip is now looking to make further investments in its operating base as it continues to move towards becoming a ‘one-stop’ destination for building long-term wealth through both saving and investment products.

This includes plans to launch new six- and 12-month fixed term deposit options, and a Cash ISA with highly competitive rates.

Simon Rabin, CEO of Chip, said: “These results are a momentous achievement and a turning point in the success and sustainability of the business. We reported our first profitable month in May and have since gone from strength to strength.

“This new, mature revenue-stage of the business has come well ahead of schedule and presented us with huge new opportunities.

“We’re focused on our mission of going beyond savings to become a trusted destination for our customers’ lifetime savings. The entire team at Chip are ready and eager to expand the business, and we have the talent, product and technology ready to take it to the next level, bring in billions of deposits and ultimately build the wealth app for our generation.

“It’s safe to say the atmosphere at Chip right now is electric.”