Only a handful of Europe’s fintech unicorns have cracked the code to profitability. According to data compiled by Sifted, just 13 out of 50 fintech startups valued at over $1 billion are currently operating in the black. Among them are financial super app Revolut, crypto trading platform Bitpanda, and payments firm SumUp, all of which have reported pre-tax profits in their most recent financial statements.
The past few years have been a stress test for fintechs. With increased regulatory scrutiny and rising interest rates, venture capital funding for the sector plunged from a record $29 billion in 2021 to just $8.8 billion last year. Investors, once enamored with breakneck growth, have shifted their focus to sustainable business models.
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For some fintechs, that shift is paying off. High interest rates have boosted revenues, especially for neobanks, allowing a select few to turn a profit. Here’s a closer look at the European fintechs that are thriving in this challenging environment.
Bunq (Netherlands)
Founded in 2012, Amsterdam-based Bunq offers digital banking services, including free savings accounts, stock trading, and travel insurance. Following its first full year of profitability in January 2024, the company is eyeing expansion in the UK and the US.
- Pre-tax profit: €53.1M
- Revenue: €186.6M
Bitpanda (Austria)
Vienna-based Bitpanda, launched in 2014, is a regulated crypto trading platform offering access to over 500 cryptocurrencies. It has diversified with a B2B product that enables fintechs and banks to offer crypto, stocks, and ETFs. Recently, it secured approval from the UK’s Financial Conduct Authority (FCA) for a UK launch.
- Pre-tax profit: €13.6M
- Revenue: €147.6M
ClearBank (UK)
Founded in 2015, ClearBank builds infrastructure for fintechs and traditional banks, offering real-time clearing through its cloud-based API. Former CFO Mark Fairless recently took over as CEO.
- Pre-tax profit: £18.4M (€21.2M)
- Revenue: £111.35M (€128.4M)
Klarna (Sweden)
Klarna, founded in 2005, pioneered the “buy now, pay later” model. With 90M customers across 26 markets, it’s one of Europe’s most recognized fintech brands. The company recently filed for an IPO on the New York Stock Exchange.
- Pre-tax profit: $33M (€33M)
- Revenue: $2.8B (€2.5B)
Monzo (UK)
Founded in 2015, Monzo started as a basic current account provider and has expanded into investments, buy now, pay later, and pensions. It’s considering an IPO but has yet to decide on a listing location.
- Pre-tax profit: £15.4M (€18M)
- Revenue: £880M (€1B)
OakNorth (UK)
A rare example of consistent profitability, SME lender OakNorth has reported positive earnings almost every year since its 2015 launch. In 2024, it issued £2.1B in new loans, growing its portfolio to £12.5B.
- Pre-tax profit: £214.8M (€255M)
- Revenue: £282.9M (€335M)
Lendable (UK)
Founded in 2014, Lendable is a digital lending platform allowing instant loans up to £20K. Unlike banks, it uses institutional capital to fund loans while profiting from intermediary fees.
- Pre-tax profit: £10.5M
- Revenue: £56.3M
Raisin (Germany)
Berlin-based Raisin, a deposit brokerage founded in 2012, reached profitability last year. The platform enables users to compare and deposit savings across multiple banks.
- Pre-tax profit: €1M
- Revenue: €158M
Revolut (UK)
Founded in 2015, Revolut began as a travel finance app and expanded into banking, insurance, and trading. Now Europe’s most valuable fintech at a $45B valuation, it’s pushing for a full UK banking license and considering a US IPO.
- Pre-tax profit: £438M (€505M)
- Revenue: £1.8B (€2.1B)
SumUp (UK)
Founded in 2012, SumUp provides payment solutions for small businesses, including card readers with fees as low as 0.99% per transaction. Investors include Bain Capital, BlackRock, and Fin Capital.
- Pre-tax profit: €873K
- Revenue: €188.1M
Starling (UK)
London-based neobank Starling serves retail and SME customers. Recently fined £20M by the UK’s Financial Conduct Authority for weak financial crime controls, it has since implemented stricter compliance measures.
- Pre-tax profit: £301M (€352M)
- Revenue: £682.2M (€808.6M)
Trade Republic (Germany)
Berlin-based Trade Republic, founded in 2015, is a commission-free trading platform backed by Sequoia, Accel, and Peter Thiel’s Founders Fund. It reportedly turned a profit in 2023 but has not disclosed financial details.
- Pre-tax profit: Not disclosed
- Revenue: Not disclosed
Zopa (UK)
Launched in 2005 as a peer-to-peer lender, Zopa has evolved into a digital bank offering savings accounts, credit cards, and AI-powered financial tools. It raised €80M last year to support new product development.
- Pre-tax profit: £15.8M (€18.7M)
- Revenue: £226M (€267.9M)
The Bottom Line
While Europe’s fintech sector remains volatile, these 13 companies have proven that profitability is possible, even in a challenging funding environment. With investors increasingly prioritizing sustainability over aggressive expansion, expect more fintechs to follow suit—or fade into irrelevance.
