The UK banking tech startup, 10x, founded by former Barclays CEO Antony Jenkins, has achieved a seven percent reduction in its annual losses for 2023, amounting to £55.1 million. This reduction coincides with the departure of its Chief Operating Officer, Curt Hess, who recently left the company. 10x provides software designed to modernize and streamline banking operations, aiming to disrupt traditional banking models with more efficient and cost-effective technology solutions.
In previous updates, 10x reported securing several high-profile clients like JP Morgan (NYSE:JPM), Westpac, and Old Mutual. The company also raised £35 million in a funding round led by BlackRock and JP Morgan earlier this year. The valuation of 10x Banking in 2021 was approximately £600 million. This financial influx is expected to support the company’s operational costs and help it achieve break-even by 2025.
Funding and Financial Performance
10x’s parent company, 10x Holdings, reported a decrease in losses from £59.6 million in 2022 to £55.1 million in 2023. Despite the reduction in losses, the company’s turnover remained stable at £21.8 million. The latest accounts revealed that the company had secured £35 million through an unsecured convertible loan note from its existing investors, with £15 million already utilized by December 2023. The company had £16.1 million in cash reserves at the end of the year.
The funding, from existing investors, will fund operations up to and beyond the point of projected break-even and net operating cash inflows in 2025.
Operational Changes and Leadership Exit
During the year, 10x reduced its workforce from 401 to 327 employees. Curt Hess, the Chief Operating Officer and Chief Financial Officer, who previously served as CEO of Barclays US customer business, exited the company in June. He has since joined Vitesse PSP Limited as the US Executive President. The highest-paid director at 10x received a remuneration of £500,000.
Comparing the recent financial performance with past data, 10x has shown a consistent effort to manage losses while securing significant investments to sustain its operations. The stability in turnover and reduction in losses signify a tactical approach to long-term sustainability. The exit of a key executive and reduction in headcount reflect strategic shifts to streamline operations and manage costs efficiently.
Antony Jenkins’ vision for 10x to triple its client roster by 2025 aligns with the company’s current trajectory of securing substantial funding and high-profile clients. The focus remains on leveraging innovative banking technology to challenge traditional banking systems. With a solid funding base and a clear roadmap, 10x is positioned to make significant strides in the fintech industry.
Further insights reveal that the company’s operational adjustments and funding strategies are aimed at achieving operational cash inflows by 2025. This forward-looking approach, coupled with a strong client base and strategic financial management, places 10x in a promising position for future growth and industry impact. For readers interested in fintech advancements, 10x’s progress provides a compelling case study in innovative banking technology solutions.
