JPMorgan's unprofitable fintech is still hiring and paying $100k on average

Fintech is in its profitability era in 2024. VCs are focusing their funding on the fintechs making money, and profitability is a key talking point for CEOs now more than ever. However, fintechs that were acquired during the fintech boom may be exempt from such struggles.

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Nutmeg, an investment management fintech bought by JPMorgan for $907m in 2021 has just posted a $54.6m loss after releasing its 2023 accounts via companies house in the UK. It has yet to turn a profit in 11 years of operation, and this year's losses are its biggest yet.

And yet... Nutmeg has been hiring. The accounts also show Nutmeg grew its headcount by 36% to 290 employees in 2023. 'Wages and salaries' were marginally down, but the average employee at Nutmeg earned £80.6k ($104.7k) last year. Nutmeg, like venture capital-backed fintechs, also offers its employees stock pay in the form of RSUs, and the fintech raised the value of those stock units by 27.5% on average. It's not finished hiring yet, either; Nutmeg currently has 14 open roles, including product manager and software engineering positions.

Venture capitalists anticipate a lot of fintech acquisitions and mergers in the near future when financial runways end, and the special treatment Nutmeg is receiving from JPMorgan indicates why. The bank at large looks to be performing quite well, and within JPMorgan Nutmeg is a bit-part player with significantly less pressure on it. Things aren't life and death, so JPMorgan can afford to be future thinking.

Nutmeg reviews on Glassdoor in 2024 say the fintech has a "very relaxed work environment" with good people, but thoughts on its leadership are mixed. Some reviews appreciate the lack of management interference, while one executive team leader says its SLT "urgently" need reviewing.

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