Startups are usually associated with rapid growth, innovation, and risk but profitability isn’t always part of the early-stage picture. Many startups focus on growth first and profits later. However, some exceptional startups manage to strike the perfect balance between expansion and profitability, emerging as major players in the global business arena.
This article explores some of the top most profitable startups in the world today, examining how they’ve achieved financial success, what industries they belong to, and the strategies behind their profitability.
Understanding Profitability in Startups
Before diving into specific examples, it’s important to understand what “profitability” means for startups. A profitable startup is one that:
- Generates more revenue than its operating costs
- Has positive cash flow
- Can sustain itself without external funding
While many startups burn through capital for years before turning a profit (like Uber and Airbnb did), others have created business models that generate steady income and allow them to grow sustainably.
1. ByteDance (TikTok)
Country: China
Industry: Social Media / Technology
Valuation: Over $200 billion (private)
Profitability: Reported annual profits in billions
ByteDance, the parent company of TikTok, is one of the most profitable startups in the world. Unlike many social platforms that rely solely on ads, ByteDance has a highly optimized algorithm that keeps users engaged for hours, driving significant ad revenue and in-app purchases. In 2023, ByteDance reportedly made over $20 billion in profit an outstanding figure for a company still considered a startup by structure.
2. Stripe
Country: USA
Industry: Fintech / Payment Processing
Valuation: $50+ billion
Profitability: Reported profitable since 2019 (off and on)
Stripe provides payment infrastructure for online businesses and has become one of the most essential fintech startups globally. From small online stores to big tech giants, millions of businesses use Stripe’s API to process payments. Its scalable, subscription-based revenue model has helped it stay profitable while continuing to expand into new markets.
3. Canva
Country: Australia
Industry: Design / SaaS
Valuation: $25+ billion
Profitability: Profitable since 2017
Canva, an easy-to-use graphic design tool, has taken the world by storm. Its freemium model brings in a vast user base, while the paid Pro version drives serious recurring revenue. By keeping its platform cloud-based and user-friendly, Canva has managed to attract millions of paying users, making it one of the most profitable SaaS startups globally.
4. Shein
Country: China
Industry: E-commerce / Fashion
Valuation: Estimated $66 billion
Profitability: Highly profitable, multi-billion dollar annual profit
Shein is a fast fashion e-commerce startup that’s become globally dominant, particularly among Gen Z consumers. With low production costs, direct-to-consumer logistics, and aggressive digital marketing, Shein has turned high-volume sales into major profits. Despite controversies, its financial success is undeniable, earning billions in annual profit.
5. Figma (Before Adobe Acquisition Attempt)
Country: USA
Industry: Design / Collaboration Tools
Valuation: $10 billion
Profitability: Became profitable before acquisition plans
Figma is a cloud-based design platform widely used for UI/UX design and team collaboration. With a subscription-based model and a growing customer base, Figma became profitable before Adobe announced its acquisition interest (which was later blocked by regulators). Its high-value enterprise clients made profitability achievable early in its growth journey.
6. Revolut
Country: UK
Industry: Fintech / Banking
Valuation: $33 billion
Profitability: Profitable since 2021
Revolut is one of the leading digital banking startups in Europe. It offers banking, currency exchange, crypto trading, and investment options all within a single app. Revolut reported its first profitable year in 2021, marking a significant milestone in the competitive fintech space.
7. Zoom Video Communications
Country: USA
Industry: Communication / SaaS
Valuation: Public company (but originated as a startup)
Profitability: Turned highly profitable post-2020
Zoom may have started as a startup in the crowded video conferencing market, but its explosive growth during the COVID-19 pandemic catapulted it into profitability. With millions of paid users worldwide and high enterprise adoption, Zoom saw record profits in the past few years.
8. Discord
Country: USA
Industry: Communication / Gaming
Valuation: $15 billion
Profitability: Profitable or near break-even
Discord began as a chat platform for gamers but evolved into a broader community platform. Its “freemium” model allows free use with optional paid perks (Nitro subscriptions). This model has been profitable, especially with its growing user base across various niches including education, entertainment, and tech communities.
9. Notion
Country: USA
Industry: Productivity / SaaS
Valuation: $10 billion
Profitability: Close to break-even with strong cash flow
Notion is a productivity tool that combines notes, databases, task management, and more all in a minimalist interface. Its viral adoption and loyal user base have made it one of the most successful productivity startups. Notion has kept operating lean, making profitability easier to achieve than many bloated tech startups.
10. Plaid
Country: USA
Industry: Fintech / API Infrastructure
Valuation: $13 billion
Profitability: Sustainable business model, growing profits
Plaid connects financial accounts to apps like Venmo and Robinhood, playing a critical behind-the-scenes role in fintech. With growing demand for financial data services and strong B2B contracts, Plaid has created a path to profitability, proving how essential infrastructure startups can be both stable and lucrative.
Conclusion
The myth that startups must burn through cash for years before achieving profitability is being challenged by these highly successful ventures. What sets these startups apart isn’t just their innovation, but also their ability to monetize efficiently, manage costs, and scale sustainably.