Business-to-Business (B2B) expansion led to increased revenue in the first half of 2021
Equals Group Reports Strong Growth and Shifts Focus
Equals Group, a leading financial technology company, has announced impressive growth figures for the first half of 2021, suggesting a promising bounceback year. The company's H1 2021 revenue increased by 23% year-on-year, reaching £16.9m.
The B2B segment of Equals Money, the company's business-to-business platform, saw a significant 26% year-on-year increase, while the B2C segment grew by 15%. This growth trend indicates a promising shift in Equals Group's focus towards the B2B sector, which now contributes a higher revenue than the B2C segment.
Equals Group is moving away from travel and retail and towards Small and Medium Enterprises (SMEs). The company anticipates future growth to be primarily driven by the B2B segment, with plans to invest in more products and marketing to continue its growth trajectory.
The projected revenue per day in Q3 2021 for Equals Group is £180k, an increase from £145k in Q2 2021 and £128k in Q1. One of the key drivers of this growth is the launch of Equals Solutions, a multicurrency collection account, which accounts for 13% of Equals Group's revenue in Q3 2021 to date. This product is aimed at larger corporations.
The trends in B2B pricing strategies are shifting towards flexible, personalized, and technology-driven approaches. Equals Group is embracing these trends, with the integration of AI and machine learning enabling real-time, data-driven pricing decisions. This allows for personalized pricing tailored to customer needs and scaling patterns, improving competitiveness and customer satisfaction.
Contract-based pricing models are becoming dominant, with volume discounts, minimum order quantities (MOQs), and tiered pricing being used to better align pricing with customer purchasing behavior and scale. Dynamic and usage-based pricing is also gaining traction, allowing buyers to pay as they scale, making pricing more adaptable and modular.
Customer expectations for buying experiences akin to B2C (business-to-consumer) are influencing pricing transparency and flexibility. B2B buyers now look for real-time inventory updates, dynamic pricing, and seamless digital interactions, pushing companies to innovate their pricing models accordingly.
Equals Group's Adjusted EBITDA climbed by 138% year-on-year, demonstrating the company's financial health. The company's share price is approximately three times higher than it was a year ago, reflecting investor confidence in its growth potential.
The company's focus on own-name IBAN capabilities is seen as key to growth in both Equals Money and Equals Solutions. With more products expected to be launched by Equals Group in the latter half of the year, the company is poised for continued growth and innovation.
- Equals Group, in an effort to drive future growth, is planning to invest in more products and marketing for its B2B segment, which currently contributes a higher revenue than the B2C segment in the business-to-business landscape of finance and investing.
- As Equals Group's focus shifts towards Small and Medium Enterprises (SMEs), the company anticipates that the B2B segment will primarily drive its growth, with contract-based pricing models, dynamic pricing, and innovative technologies such as AI and machine learning being employed to improve competitiveness and customer satisfaction.
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