They are the stars of the European Tech sector. The 20 largest unicorns of the old continent (startups valued at more than one billion euros) have all obtained generous fundraising in recent years. In particular, they have enabled them to develop their offers, to hire, or even to extend their international deployment.
But profitability is still a long way off for some of them. This is the report made by the media Sifted which drew up a complete inventory of these 20 startups. The result is even quite depressing, since it shows that only three of them are now profitable: the neobank Revolut, the fintech Zepz, and the consumer credit platform Lendable.
French startups are not panicking
It is appropriate from the outset to qualify this inventory, and to note that some of these companies are perhaps already beneficiaries but did not wish to communicate with our colleagues. Similarly, not achieving profitability is not necessarily always a huge concern. And we know that some companies plan to lose money in the short term, to better dominate their market later.
Among the various startups cited by Sifted, we can notably cite the case of French companies. This is the case of the Qonto neobank. The company says it first invested in products, hiring new talent, and customer service. All of this has impacted its short-term results, but it hopes to achieve profitability by 2025. The idea is even to convince a million SMEs and self-employed workers in the next three years, by continuing to invest in our neighbours, particularly in Italy, Spain and Germany.
For its part, BackMarket also still does not generate a profit. But Thibaud Hug De Larauze does not panic for all that. For him, while it is difficult to say when his company will reach profitability, his team ” has always believed that if we focus on growth and continue to provide high quality refurbished technology and affordable it will eventually happen.
Finally, others recognize that the period is very delicate, like the Swedish fintech Klarna. Its CEO, Sebastian Siemiatkowski, explained to our colleagues that he: “ made difficult decisions “, but that he hopes to quickly regain profitability, in a complicated economic context. In fact, the valuation of the startup has fallen by 85% from $45.6 billion last year to $6.7 billion today. Klarna has also laid off 10% of its workforce recently.