Fintech Curve has reported an operating loss of £37.9 million in its annual results for 2020.
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The operating losses that the company has so far reported grew from £6.5 million in 2018 to £28.5 million between November 2018 and December 2019, with 2020’s results having a significant increase.
Revenue was up 86% year-on-year, reaching £9.9 million, Curve’s cost of sales stood at £11.6 million, which led to a gross loss of £1.7 million.
Although Curve’s gross margin improved in 2020, driven by growing premium subscription revenues which had higher margins than card transactions.
After Curve received FCA approval on September 1st, the company has launched a BNPL option called Curve Flex to simplify and unify credit.
Curve Flex is different from other existing BNPL solutions on the market because it is not restricted to specific merchants, accounts, cards, or products.
Curve is now providing its customers with the power to pay later for almost any purchase made at any merchant, from any card, up to a year ago.
The 2020 annual report recorded a 57% increase in total payment volume thanks to new customers and online initiatives in the face of lockdowns.
Card transactions contributed two-thirds of revenues and premium subscriptions one-third, while platform products remained marginal, the company outlines.