UK challenger banking app Dozens is set to cease its consumer operations, attributing the decision to the ongoing impacts of COVID-19 and difficulties in securing funding.
Established in 2019, Dozens provided users with a range of budgeting and analytics tools designed to enhance saving and investing. The company claims to have amassed around 60,000 customers and received £28 million in investments from backers in Hong Kong, alongside a £3.5 million crowdfunding raise on Seedrs.
In June, the firm notified its customers of the impending shutdown, allowing them two months to transfer their funds to alternative providers. A statement from the company reflects on the challenges faced, stating: “COVID hit when we were still a very early stage company. Overnight, we lost both investment and B2B deals worth millions of pounds. Our focus immediately switched to survival mode—simply looking after our employees and customers for as long as we could to provide some form of stability at a time when everything was so uncertain.”
Dozens navigated through 2020 and 2021 by migrating many of its services to a new technology stack and partnering with firms like ClearBank, Marqeta, and Visa. However, the company acknowledged that by mid-2022, the landscape had changed significantly since its launch in 2019.
“The domino effect of COVID means there is less money in the system,” the statement continued. “The pandemic has caused supply chain disruptions globally, compounded in the UK by Brexit. As people and businesses adjust how they use their finances, there is decreasing investment in less liquid avenues like venture capital funds.”
The statement also noted a shift within the fintech sector, highlighting that less capital is flowing into consumer-focused fintech solutions. “It’s a great time to be a bank. But while we’re still in the developmental stages of the business and operating under an e-money license, a model that doesn’t depend on lending has a lower chance of survival.”
Looking ahead, Dozens plans to pivot towards a B2B-focused business model, emphasizing the progress made in the past 3.5 years. “While it’s goodbye to Dozens for now, the foundations we’ve laid have put us in a stronger position than we’ve ever been in. We remain confident that, one day, if the revenue is in place and the time is right, we could return—substantially and in full measure.”