Pensionbee, a London-based fintech, maintains its growth momentum, eyeing a significant U.S. market expansion.
- The company raised £20m through share placements to propel its nascent U.S. division.
- Pensionbee’s assets under administration surged by 41% to £5.5bn by the end of September.
- A continued increase in customer numbers and positive earnings mark financial stability for Pensionbee.
- Chief Executive Romi Savova remains optimistic about transforming U.S. retirement planning.
In an ambitious move, Pensionbee, a London-listed fintech firm, has secured £20m in funding aimed at facilitating its expansion into the U.S. market. This strategic decision sets the stage for the company to tap into the vast U.S. defined contribution pension market, valued at approximately $22.5 trillion. This expansion is underpinned by a partnership with State Street, a move that seeks to leverage local expertise and market presence.
Over the past quarter, Pensionbee has reported remarkable financial growth. The firm’s assets under administration increased by 41% from the previous year, reaching £5.5bn. This surge is attributed to not only the inflow of funds from new customers, which amounted to £538m, but also £153m from existing clients. The company has witnessed a robust increase in its customer base, which grew to 260,000, reflecting a year-on-year rise of 37,000 new clients.
Financially, Pensionbee has demonstrated increasing stability and profitability. The firm reported a revenue increase to £9m for the third quarter, up from £6m the previous year. Furthermore, it has achieved its second consecutive quarter of positive adjusted EBITDA, marking £1m. This performance aligns with the company’s optimistic forecast of breaking even on an adjusted EBITDA basis by 2024.
Since its debut on the London Stock Exchange in 2021, Pensionbee’s stock has notably more than doubled, evidencing investor confidence and market appeal. The firm’s leadership, represented by CEO Romi Savova, is targeting a capture of approximately 2% of the UK pension market within the next decade, aiming for £20bn to £25bn in assets under management.
The U.S. expansion represents both a challenge and an opportunity. As Romi Savova stated, ‘We are pleased to see a positive consumer response to our marketing approach and to have developed local features to facilitate easier rollovers.’ The firm aims to mirror its UK success by acquiring $20bn to $25bn in U.S. retirement assets over the coming decade, contributing to a transformative period for Pensionbee.
Pensionbee’s strategic expansion and robust financial growth signal a promising future in both UK and U.S. markets.
