UK-based startup Yoto is seeing strong growth for its business in children’s speakers and related content – including music. The company told the Financial Times that its revenues grew by 86% in 2024 to $94.8m ($127.6m at current exchange rates) – and this on top of an 84% rise the previous year.
Yoto wasn’t profitable in 2024: its losses grew from $3.4m in 2023 to $8.4m last year, with the company blaming a £7m hit from a battery recall for one of its speakers. “We expect to be profitable on any basis this year,” CEO Ben Drury told the FT.
The news comes two months after Yoto announced a significant addition to its board: former Apple director of engineering Jesse Dorogusker, who also did a stint as CEO of music service Tidal. “Hardware + software + services are complex products and companies to build. Also my favorite,” he wrote in a LinkedIn post at the time.
Yoto raised $22m of Series B funding in 2023 as its business grew, with the round led by Meta CEO Mark Zuckerberg and his wife Priscilla Chan’s investment fund.
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