FinTech startup Revolut has made solid progress over the last year of 2020 while cutting down significantly on its operating losses.
FinTech startup Revolut has recently unveiled the results of its last financial year 2020. The company reported a staggering $361 million revenue in 2020, up 57% from the previous year.
However, it turns out that Revolut has been holding cryptocurrencies on its balance sheets. Thus, these revenue figures include the fair value gains on the company’s crypto investment. Reportedly, Revolut made $54 million gains through crypto investments last year.
Besides, Revolut also attained good scalability in terms of expanding its customer base. By the end of 2020, Revolut had 14.5 million personal customers and half a million companies using Revolut Business. In a statement, Revolut CEO Nikolay Storonsky said:
“As the extraordinary circumstances of 2020 drove the trend towards digital financial management we continued to innovate for customers to make their financial lives easier and accelerate daily use. We launched 24 new retail and business products, expanded into the US, Japan and Australia and launched banking services in Lithuania, all while significantly improving our profitability. We began 2021 with a more resilient and productive business that will enhance our trajectory towards rapid growth.”
Revolut Improved Its Results in 2020
Last year in 2020, the gross profit for Revolut reached $170 million. However, the company still continues to report operating losses. In 2020, Revolut’s total non-adjusted operating loss was $277 million. The company reported that high administrative expenses contributed to this operating loss. Employing nearly 2200 people, Revolut spent $367 million on administrative costs alone.
However, things seem to be improving in comparison to the previous years. when we compare the revenue for Q1 2020 and Q1 2021, here’s where we can see a sizeable growth in revenue. In Q1 2021, revenue grew by 130% and gross profit surged by 300% quarter-over-quarter.
Besides, Revolut has also been expanding its product offerings. The FinTech company is aiming to become a one-stop solution for debit cards, insurance products, trading accounts, current accounts, crypto trading and much more.
Revolut’s foreign exchange division also generated $111 million in total revenue. Besides, its subscriptions such as Revolut Premium, Revolut Plus, and Revolut Metal contributed to $104 million in total revenue.
The UK is so far the biggest market for Revolut. Last year in 2020, nearly 85% of the company’s came from its operations in the UK. At the same time, Revolut is also expanding its footprint in other markets like Australia, Japan, the US, and others.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.