10x Banking Tech Startup Shows Strong Growth in 2023
Hey everyone, let's delve into the latest developments from 10x, the UK banking tech startup established by Antony Jenkins, the former CEO of Barclays. In 2023, the company successfully reduced its annual losses by 7% to £55.1 million, marking a significant achievement.
10x has been a disruptive force in the banking sector since 2016, offering cutting-edge software to financial institutions and aiming to revolutionize the traditional banking landscape with its rapid and cost-effective technology. The company has already attracted major clients such as JP Morgan, Westpac, and Old Mutual.
Earlier this year, 10x secured a £35 million funding round, with leading contributions from BlackRock and JP Morgan. This funding infusion, the first since 2021 when the company was valued at approximately £600 million, is projected to sustain its operations robustly until it reaches break-even in 2025.
On the financial front, 10x maintained a steady turnover of £21.8 million and closed 2023 with £16.1 million in reserves. Additionally, the company streamlined its workforce from 401 to 327 employees, and Antony Jenkins himself earned £500,000.
In a notable personnel update, Curt Hess, who held the positions of COO and CFO, departed in June and currently serves as the US executive president at Vitesse PSP Limited. It has undeniably been a dynamic year for 10x, marked by substantial progress and significant organizational changes.
Key Takeaways
- 10x reduced its annual losses by 7% to £55.1 million in 2023.
- The company secured a £35 million funding round led by BlackRock and JP Morgan.
- 10x aims to triple its client roster by 2025.
- Curt Hess, the COO/CFO of 10x, exited the company.
- 10x maintained a turnover of £21.8 million while reducing its headcount.
Analysis
The reduction in 10x's losses and the acquisition of fresh funding underscore the company's resilience and potential for growth, positively influencing investors such as BlackRock and JP Morgan. The strategic downsizing and Hess's departure align with a more focused and leaner approach to operations, stabilizing the company's finances in the short term and positioning it for market expansion and profitability by 2025. As 10x's innovative technology gains momentum, competitors and the broader banking sector may experience heightened pressure.
Did You Know?
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10x:
- 10x is a UK-based technology startup specializing in banking software, established by Antony Jenkins, a former CEO of Barclays. The company's mission is to revolutionize traditional banking by offering fast and affordable technology solutions to banks.
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BlackRock:
- BlackRock is a prominent global investment management firm renowned for its expertise in asset management, risk management, and advisory services. It stands as one of the largest asset managers globally, exercising significant influence in global financial markets.
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Curt Hess:
- Curt Hess is a notable figure in the financial and technology sectors, having served as both COO and CFO at 10x before transitioning to Vitesse PSP Limited as the US executive president. His responsibilities included overseeing operational and financial strategies, making him a pivotal figure in the companies with which he has been associated.