Hunting AI growth stocks to buy? Consider this UK tech start-up tipped to fly in 2026!
You’ve likely never heard of Bango (LSE: BGO), a tiny UK tech start-up valued at around £70m. The fledgling company may not be a household name yet — but give it a few years and that might all change.
Analysts watching the stock expect the share price to soar in the coming year. Currently trading at around 79p per share, the average 12-month price target is 206p — a 158% increase.
But don’t trust broker forecasts alone — they can be overly-optimistic! I always take a closer look before considering any stock.
So what is Bango, and what does it do?
An all-in-one subscription engine
Rather than litter the Internet with more AI slop, Bango is offering a genuinely useful product: an AI-enhanced subscription bundling platform.
Its core product, the Digital Vending Machine, helps businesses bundle services like Netflix, Amazon, and Xbox into simple offers on their platform, helping end users sign up and pay in one click.
I recognise the model (and its effectiveness) because I’ve used it myself and find it attractive as a value-added feature.
So how exactly does that work, and will it gain momentum?
Selling simplicity
The core attraction of this model is how it appeals to a desire for simplicity in an increasingly complex world. Keeping track of individual subsriptions can be a headache, so having them all in one place sounds great!
Under the bonnet, Bango handles the payment plumbing: things like carrier billing and other digital payment methods. On top, it runs its ‘Digital Vending Machine’ (DVM), which is basically a catalogue and management system for lots of different subscription offers in one place.
It also monetises data from this activity, selling insights and audience segments that help its partners target marketing and improve takeâup of these digital services.
And it’s working — in 2025, it secured a record 12 new customers, up from nine the previous year. The DVM, its core product, has been adopted by seven out of eight major US telecom providers, plus providers in Japan, South Korea, Turkey and South Africa.
But what do the numbers say â does it scream the next big UK tech story, or is it destined to be another forgotten AI dream?
Financial fortitude
Like most tech-focused penny stocks, the company is yet to turn a profit. But not for lack of trying — overall, things are improving, with earnings are up 70% year on year
Although it posted a loss of £2.86m in 2024, this was an improvement on -£7m in 2023. Plus, revenue has grown exponentially from £12.1m in 2020 to £42.2m today.
Like most start-ups, it’s funnelling cash back into the business. The balance sheet is tight with modest net debt and weak liquidity, and the valuation still assumes decent growth.
But if its strategy pays off and it gains a foothold, things could really take off. So is it worth considering?
Weighing risk vs reward
Bango is a classic highârisk play with lots of growth potential — if it can execute effectively. It could be the next big thing in the UK’s growing tech market. If not, it could be edged out by a more aggressive competitor.
For those comfortable with that risk (and limited earnings visibility), a small allocation is worth considering. As always, ensure to reduce risk by balancing out with some big-name FTSE 100 defensive stocks.
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Mark Hartley has no position in any of the shares mentioned. The Motley Fool UK has recommended Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
