The CEO of AI-powered fintech Cleo has teased a potential IPO, after doubling year-on-year revenue, according to results covering 2024.
Founded in 2016 by Barney Hussey-Yeo, Cleo is most known for its AI assistant, which encourages users to build better financial habits through its characterful chatbot.
Announcing the results on LinkedIn, CEO and founder Barney Hussey-Yeo claimed Cleo will soon reach $500m annual recurring revenue while floating the idea of a London or NYC public listing.
In financial results covering the year-end of 2024, Cleo revealed details of a previously undisclosed funding round worth $38.8m, backed by existing investors. The fintech has previously raised over $130m in funding from investors including Balderton Capital, LocalGlobe and EQT Ventures.
Cleo reported a pre-tax loss of $769k compared to a $16.1m the year prior, as revenue increased from $65.9m to $135.7m. Cleo makes money by offering tiered subscription plans that unlock a credit-building card and cash advances alongside extra features for its AI assistant, depending on its plan.
The uptick in revenue came as a result of a 50% increase in subscription revenue and a close to tripling in transaction fees — payment interchange fees on purchases with its card and also fees from its cash advance product.
The results also disclosed a previously unannounced $38.8m funding round in March this year through the issuance of convertible loan notes to Cleo’s existing investors. And while the AI fintech is now nearing full-year pre-tax profitability, Cleo has also encountered challenges in the past year.
In March this year, the company, which is incorporated in the UK but serves customers in the US, paid $17m to settle the Federal Trade Commission’s allegations it had deceived consumers on the speed and amount customers could receive from its cash advance product.
