UK economy recovers from high inflation
In the midst of a long and often fraught general election campaign in the UK, it’s easy to overlook the latest economic news. But the latest data on the UK’s economic performance is encouraging. Figures just released by the Office for National Statistics show that GDP growth in the first quarter of the year was stronger than previously estimated, at 0.7%. Indeed, the UK was the fastest growing economy in the G7 in the first quarter of the year – and now that the Bank of England has managed to bring inflation back to its target level, interest rate cuts could provide further support for growth.
The UK’s services sector in particular appears to be doing better, while businesses in sectors such as manufacturing are still struggling to emerge from the recession that hit the country last year. But there are bright spots in the economy and business optimism now appears to be improving: a recent survey by Lloyds Bank found that UK businesses were feeling more confident than at any time in the past eight years.
So, with the UK economy now set to accelerate, which growing businesses could benefit most? Here are just five start-ups and scale-ups to watch as the recovery takes hold.
Naked energy
Naked Energy is a leading UK-based solar thermal technology company that is well positioned to capitalise on the growing demand for sustainable products. It recently signed a strategic partnership to manufacture its Virtu product range in the US. The product can generate both electricity and heat, saving up to four times the carbon footprint of standard solar panels, helping to significantly reduce emissions while also lowering costs.
Transaction Payment
Founded 12 years ago, TransactPay has steadily grown to become the trusted partner of many fintechs in launching card programs for their customers. The company, with offices in the UK, Gibraltar and Malta, is a licensed e-money institution that offers bank identification number sponsorship and is a principal member of both Mastercard and Visa. Joining these groups can be costly and time-consuming, so partnering with TransactPay allows fintechs to get to market faster and in a compliant manner. The company already counts fast-growing fintechs such as Yonder as customers and has been steadily growing its staff over the past decade or more.
Mood
Vibe, a travel booking technology provider, has been in business for over 15 years and announced its international expansion in 2023, specifically into the US market. Based in the South East of the UK, the company counts agiito, PAA and Inspire among its customers. It aims to provide a highly tailored booking experience to a wide range of audiences, including business and leisure travel buyers.
Metomic
Metomic is a security solution that integrates directly into software-as-a-service apps to detect, protect and secure sensitive data in SaaS apps. This is a particularly significant innovation given the number of applications that the workforce relies on every day. The company raised $20 million in new investments in 2023 to fuel its continued international expansion and counts companies such as TravelPerk and Zappi among its customers.
BVNK
BVNK is a payment platform that enables its customers to launch stablecoin payments. Stablecoin is designed to have a stable value by being pegged to another asset, such as a currency, commodity, or financial instrument. Headquartered in London, BVNK has only been around for three years. Its team has grown to over 270 employees and has secured $40 million in funding to date. The company recently announced that it had integrated PayPal USD as a way to boost the mainstream adoption of stablecoins.