UK fintech Monovate posts £8.3m loss as Visa and Mastercard partner dumps European arm
A key fintech partner of Mastercard and Visa suffered a hit to its bottom line as the business restructured its European operations and counted the costs of a major accounting error.
Monovate – which acts as a licensed middle man bridging businesses and payment giants – made a loss of £8.3m in 2025, which was dragged down from the £3.5m loss on the disposal of its European operation UAB Monovate.
The firm’s restructure of the European market comes as many in the sector view the market as ripe for expansion after pivoting from the US.
Fintech darling Monzo is targeting the region to beef up its digital banking presence after abandoning operations in the US, meanwhile consumer payments firm Zilch snapped up Fjord Bank last year as a means to secure a European banking licence.
Monovate also revealed it had made a mistake in how it calculated its past finances, admitting it failed to properly account for the long-term costs of developing its own software.
In correcting this error, the firm instantly wiped £3.7m off its historical savings and ballooned its 2024 losses by £2.7m to a total of £9.2m.
Monovate lands £10m financing to push forward
But Monovate was also able to land some crucial support with £10m in funding from its new parent company US-listed Exodus Movement, which formally acquired it on April 30.
The firm was also able to wipe out its £22.4m debt pile in loans and borrowing through handing its lenders shares in the company instead of repayments.
As a result, Monovate finished the year with £6.2m in operational cash.
The company has set its sights on expanding its UK operations, with its headcount expanding to 45 from 32. It also said it plans to invest £3.5m in its tech development.
Revenue grew nearly 11 per cent for the year to £61.5m as it processed over £1bn transactions.
Michael Roldph, chief executive of Monovate, said the growth set the firm up “exceptionally well” under its new ownership of Exodus and opened up “international growth opportunities”.
“Monavate is proud to have been one of the UK’s foremost fintech success stories since inception just 5 years ago.”
The Cambridge-based business was founded in 2020 and has an e-money licence from the City watchdog that allows it to carry out the infrastructure behind physical and virtual payment card issuing and transaction settlements.
The firm landed £5m in seed funding in 2021 with an anonymous US investor leading the round.