London-based fintech Payhawk posted heavy losses for 2023 despite more than doubling revenue.
Based in Chancery Lane, Payhawk is a tool for managing corporate expenses, invoices, and company cards. The company works with clients including Microsoft, QuickBooks and Oracle NetSuite.
The group reported a loss of €32m (£26.8m) for the year ended December 2023, 80% more than the year prior.
The loss was driven by increased administrative and operating expenses as well as depreciation and amortisation expenses.
Payhawk said the increased expenses were largely down to a higher headcount and “heavy investment in marketing campaigns”.
Despite the loss, the company reported revenue of €12.6m, up from €5.8m in 2022. Gross profit for the year reached €9.7m. No dividends were paid during 2023.
The director’s report described 2023 as a year “marked by unparalleled achievements” and “nothing short of extraordinary”.
Payhawk, which has locations in London, Sofia, Berlin and Barcelona, raised a $112m (£84.5m) Series B round in 2021 led by Silicon Valley-based investor Greenoaks – a backer of Gorillas, Robinhood, Stripe and Checkout.com.
This round was extended with an additional $100m investment in February 2022 that included Lightspeed Venture Partners.
Payhawk’s Series B came just seven months after its $20m Series A round.