Priya PatelTL;DR
Barcelona-based corporate neobank Neo has reported €1 million in profit in 2023, after experiencing a loss of €1 million in 2022. The fintech, which provides multi-currency accounts for corporate treasurers, has seen growing demand from SMEs looking for alternatives to traditional banks for managing their international business needs. With more than 300 corporate customers across Europe, Neo believes it can continue to grow its European business without external funding. However, the company is considering seeking new funding partners to expand into non-EU markets, with Singapore and Asia in its sights.
Barcelona-based corporate neobank Neo has announced that it hit profitability in 2023 and believes it can grow its European business without the need for external funding. The fintech experienced a €1 million profit in 2023, compared to a loss of €1 million in the previous year. Neo provides multi-currency accounts for corporate treasurers and has over 300 corporate customers across Europe. It offers International Bank Account Numbers (IBAN) that allow businesses to send and receive payments in 25 currencies. The company argues that its offering makes it easier for SMEs to manage their funds and store multiple currencies compared to its competitors. Neo has reported revenues of over €5 million in 2023 and claims that its profitability sets it apart from VC-backed rivals who are still making losses.
Despite its current financial success, Neo has not ruled out seeking external funding in the future. The company is considering expanding into non-EU markets, with Singapore and Asia as potential targets. Neo’s CEO, Laurent Descout, stated that the company does not believe it will need external funding to continue growing its European business, but it may require funding partners to enter new markets. Neo has already raised nearly €12 million and is backed by Skybound Capital, based in South Africa.
