Solaris aims to triple revenue over next two years, but doesn’t rule out further job cuts

Financial figures show Solaris, which has a German banking license, doubled its revenue last year to 101 million euros, but recorded a pre-tax loss of 34 million euros. He now aims to triple his income over the next two years.

Image source: CEO Carsten Höltkemeyer,

German banking-as-a-service provider Solaris (formerly Solarisbank) estimates it can triple its revenue to 300 million euros over the next two years, but has not ruled out further job cuts as it faces challenges on several fronts.

The Berlin-based fintech raised €190 million in a Series D funding round last year, joining a group of Europe’s most-loved fintechs in earning unicorn status with a $1 price tag. .4 billion euros.

Financial figures show Solaris, which has a German banking license, doubled its revenue last year to 101 million euros, but recorded a pre-tax loss of 34 million euros.

But Solaris said it was now on track to turn the clock back by the end of the year and its new CEO Carsten Höltkemeyer, the former German CEO of Barclaycard, said fintech has the potential to triple its revenue over the next two years. years.

Höltkemeyer told the FinancialTimes“I see the potential for 300 million euros in net income [by 2024]and of course have the ambition to achieve it.

The new CEO says the majority of the revenue boost is already locked in after the fintech won Europe’s biggest car association, ADAC, as a customer, processing more than a million of its cards loans that will generate more than 100 million euros in annual income while rising interest rates will add another 25 million euros per year.

However, Höltkemeyer stressed that increasing his revenue target will depend in part on broader market conditions.

Solaris has faced several recent challenges, including job cuts, while it has also been hit by customers slashing their growth plans and one customer, online lender Nuri, filed for insolvency. .

Another headache this year came when BaFin, the financial regulator, lambasted Solaris for organizational flaws, meaning it imposed stricter capital requirements and new customers had to be approved first. by the regulator.

Höltkemeyer told the FinancialTimes that he could not rule out further job cuts on top of those previously announced this year, when Solaris laid off nearly 10% of its 750 employees.