Mode Global Holdings PLC (LSE:MODE, OTCQB:MODGF), the fintech company, said it achieved its aim of substantially increasing its user base in 2021.
The company highlighted that the number of users grew by 251% from the year before with 70% of trading customers being repeat buyers.
Trading volume increased by 732% compared to the same period in 2020. On average, Mode customers had a trading volume of £2,995, and an average Bitcoin balance of £1,330.
In 2022, Mode will look to increase its app's user base and grow revenue, as it seeks to “offer services to people at all levels of the crypto spectrum, from crypto curious to crypto native”.
In preparation for 2022's growth, Mode has extensively expanded and developed its risk management framework.
In addition, Mode, which has a market capitalisation of £7.5mln, has received irrevocable commitments from new and existing investors to subscribe for £1.94mln of convertible loan notes. The loan notes, which carry a coupon of 8%, are convertible into ordinary shares.
An increase in revenue in 2021 to £1.31mln from £450,000 in 2020 was accompanied by an increase in administrative costs to £5.86mln due to higher people costs of £4.16mln and share option expenses of £743,000. Advertising spend rose to £1.39mln from £188,000 in 2020.
“2021 was a big year for Mode. Our aim was to grow our user base and give them the products they want. Put simply, we achieved what we set out to do,” said Rita Liu, the chief executive officer of Mode.
“Mode is a rarity on the LSE - a crypto-driven fintech which has obtained regulatory oversight via EMI and FCA registration. Those accreditations demonstrate that we are leading the way in the UK's digital asset industry. The prudent and sustainable approach we have adopted from day one will also help the firm navigate current market volatility, thanks to our strong risk management framework. Clearly, 2021 has been a year of innovation, development and growth and we will continue to build on this momentum in 2022,2 she added.
Jonathan Rowland, the chair of Mode, was pleased by the results.
“The focus in 2021 was on product development and growth. The delivery of these ambitious growth plans did see operating costs increase in 2021. A combination of hiring more talent and costs associated with advertising and the listing saw these go up as we anticipated they would,” Rowland said.
“However, the revenue increases we are reporting are a clear indicator that our proposition is a compelling one. In addition, our successful oversubscribed convertible loan also shows that despite recent market volatility in crypto and tech, Mode continues to attract strong interest from the investor community. Mode is uniquely positioned to lead the next wave of crypto adoption and evolution and as a business, we are primed for fast future growth in 2022 and beyond," he added.
Shares in Mode were down 1.125p at 7.125p after an hour of trading.