SteadyPay Revenue, Valuation & Funding (2024)

SteadyPay generated an estimated $7.7M in annual revenue in 2024.

SteadyPay crossed $1 million in annualized recurring revenue as of April 2022, up from approximately $384,000 a year earlier, representing growth of roughly 150% over that period. With 10,000 customers and an average revenue per user of $8 per month, the company was generating approximately $83,000 per month in membership fee revenue at the time of the interview.

SteadyPay had 10,000 customers on its platform as of April 2022, up from approximately 4,000 customers a year earlier. The company targets gig economy workers and others with variable income, with the average UK user earning approximately £2,000 per month net after taxes.

Pricing is tiered. The entry-level tier, focused on credit building only, is priced at $5 per month. The flagship tier is priced at £4 per week or approximately £16 per month (roughly $20). The blended average across all tiers is approximately $8 per customer per month. Top-tier customers generate more than £200 in annual revenue for SteadyPay. Customer onboarding takes two to three minutes, completed entirely through an automated bank account connection with no manual steps required.

SteadyPay earns revenue through a fixed monthly membership fee rather than a stated interest rate. The fee structure, combined with a repayment schedule typically spanning one to three months depending on customer balance size, implies an effective annual interest rate of approximately 20.8% on advances made to customers. Mukhanov confirmed this figure directly.

The company also earns a spread on its warehouse lending facility. The original facility carried an interest cost above 13% per year, while the implied yield on customer advances is approximately 20.8%, producing a gross spread of roughly 6 to 7 percentage points on deployed capital. Mukhanov noted this spread will compress as the facility scales, with the cost of a £5 million-plus facility expected to fall to high single digits to low double digits, reducing but not eliminating the lending margin.

The default rate, broadly defined to include customers who have stopped repaying advances but continue paying membership fees, is below 10%. Mukhanov noted that total loss rate, excluding customers who default on repayments but remain paying members and may return to good standing, is close to 3%. SteadyPay requires that at least 70% of income visibility be present on connected accounts before a customer qualifies for advances, which serves as a primary underwriting filter. The company uses open banking data, machine learning, and real-time income tracking for credit risk assessment. SteadyPay had two groups of finance providers as of April 2022, with a second provider supporting a pilot business line. Profitability: Mukhanov stated the company reached breakeven at the $1 million ARR milestone, though he noted that following the $5 million seed raise the company may be in a spending mode again.

Employee headcount and team composition were not discussed in the interview.