Finance

Fintech GoCardless halves loss, targets full-year profit by 2026

Published

4 months ago

February 3, 2025

Business Finance News

Hiroki Takeuchi, co-founder and CEO of GoCardless.

Zed Jameson | Bloomberg | Getty Images

Financial technology unicorn GoCardless more than halved losses in 2024 and said it’s aiming to reach full-year profitability by 2026.

The London-based startup, which helps businesses collect recurring payments such as subscriptions, reported a net loss of £35.1 million ($43.8 million) in the full year ending June 30, 2024.

That was a 55% improvement from the £78 million GoCardless lost the year prior.

The firm noted that “restructuring activity” at the end of the full year ending June 2023 contributed to a reduction in operating losses in 2024. In June 2023, GoCardless announced it was cutting 15% of its global workforce. That took GoCardless’ salary expenses down 13% to £79.2 million in the company’s 2024 fiscal year.

Still, while this improved the company’s financial picture, GoCardless’ CEO Hiroki Takeuchi told CNBC that revenue growth also helped significantly.

“We’re much more focused on the cost side … We want to be getting very efficient as we scale,” Takeuchi said in an interview last week. “But we also need to continue growing. We need both of those things to get to where we want to be.”

GoCardless grew revenue by 41% to £132 million in full-year 2024. Of that total, £91.9 million came from customer revenue.

Last year also saw GoCardless record its first-ever month in profit in March 2024. Takeuchi said its his aim for GoCardless to post its first full-year profit in 12 to 18 months’ time, adding it’s “well on track” to do so.

‘No plans’ to IPO

Back in September, GoCardless acquired a firm called Nuapay, which helps businesses collect and send payments via bank transfer.

Asked whether GoCardless is considering further mergers and acquisitions in future, Takeuchi said the firm is “actively looking,” adding: “We’re seeing lots of opportunities come up.”

Following its acquisition of Nuapay, Takeuchi said GoCardless is currently testing a new feature that allows clients to distribute funds to their own customers.

“If you take something like energy, the vast majority of the payments are about collecting money,” he told CNBC.

“But then you might have some of your customers that have solar panels on their roof and they’re sending energy back to the grid, and they need to get paid for that energy that they’re generating.”

GoCardless, which is backed by Alphabet’s venture arm GV, Accel and BlackRock, was last privately valued by investors at $2.1 billion in February 2022.

Takeuchi said the firm had no need for external capital and that there are “no plans” for an initial public offering in the near term.

Fintechs have been watching Swedish fintech Klarna’s plan to go public closely — but many are waiting to see how it goes before deciding on their own plans.

With technology IPOs at historic lows, several startups have instead opted to provide employees and early shareholders liquidity by selling shares in the secondary market.

In November, Bloomberg reported that GoCardless had chosen investment bank Lazard to advise it on a $200 million secondary share sale. GoCardless declined to comment on the report.

Finance

CVX, UAL, NOC, RH and more

Published

25 minutes ago

June 13, 2025

Business Finance News

Finance

Trump CFPB cuts reviewed by Fed inspector general

Published

21 hours ago

June 12, 2025

Business Finance News

Director of the Office of Management and Budget (OMB) Russell Vought attends a cabinet meeting at the White House in Washington, D.C., U.S., April 10, 2025.

Nathan Howard | Reuters

The Federal Reserve’s inspector general is reviewing the Trump administration’s attempts to lay off nearly all Consumer Financial Protection Bureau employees and cancel the agency’s contracts, CNBC has learned.

The inspector general’s office told Sen. Elizabeth Warren, D-Mass., and Sen. Andy Kim, D-N.J., that it was taking up their request to investigate the moves of the consumer agency’s new leadership, according to a June 6 letter seen by CNBC.

“We had already initiated work to review workforce reductions at the CFPB” in response to an earlier request from lawmakers, acting Inspector General Fred Gibson said in the letter. “We are expanding that work to include the CFPB’s canceled contracts.”

The letter confirms that key oversight arms of the U.S. government are now examining the whirlwind of activity at the bureau after Trump’s acting CFPB head Russell Vought took over in February. Vought told employees to halt work, while he and operatives from Elon Musk‘s Department of Government Efficiency sought to lay off most of the agency’s staff and end contracts with external providers.

That prompted Warren and Kim to ask the Fed inspector general and the Government Accountability Office to review the legality of Vought’s actions and the extent to which they hindered the CFPB’s mission. The GAO told the lawmakers in April that it would examine the matter.

“As Trump dismantles vital public services, an independent OIG investigation is essential to understand the damage done by this administration at the CFPB and ensure it can still fulfill its mandate to work on the people’s behalf and hold companies who try to cheat and scam them accountable,” Kim told CNBC in a statement.

The Fed IG office serves as an independent watchdog over both the Fed and the CFPB, and has the power to examine agency records, issue subpoenas and interview personnel. It can also refer criminal matters to the Department of Justice.

Soon after his inauguration, Trump fired more than 17 inspectors general across federal agencies. Spared in that purge was Michael Horowitz, the IG for the Justice Department since 2012, who this month was named the incoming watchdog for the Fed and CFPB.

Horowitz, who begins in his new role at the end of this month, was reportedly praised by Trump supporters for uncovering problems with the FBI’s handling of its probe into Trump’s 2016 campaign.

Meanwhile, the fate of the CFPB hinges on a looming decision from a federal appeals court. Judges temporarily halted Vought’s efforts to lay off employees, but are now considering the Trump administration’s appeal over its plans for the agency.