Nikolay Storonsky, founder and CEO of Revolut.
Harry Murphy | Sportsfile for Net Summit by way of Getty Photographs
Monetary expertise big Revolut reported its first-ever annual revenue in 2021, in accordance with monetary accounts launched Wednesday, as subscriptions to its paid packages and total utilization of its app grew sharply.
The corporate reported revenues of £636.2 million ($767.1 million) for the yr, thrice what it made the earlier yr, and swung to a pre-tax revenue of £59.1 million. In 2020, Revolut recorded a pre-tax lack of £205 million.
Revolut’s announcement is a uncommon constructive piece of stories in a fintech market that has been stricken by mass layoffs and big valuation cuts as traders reassess the house amid worsening macroeconomic situations.
Klarna, the Swedish purchase now, pay later fintech, noticed its valuation plunge 85% to $6.7 billion final yr. On Tuesday, the agency posted a record $1 billion loss in its 2022 fiscal yr.
For 2022, Revolut gave a buying and selling replace saying it expects revenues to have grown greater than 30% to £850 million, citing a diversified enterprise mannequin. As a privately held agency, it’s not required to share frequent quarterly studies.
Nevertheless, Revolut was late to producing its accounts to the U.Ok. firm register, Corporations Home, in time for a Dec. 31 deadline. They have been lastly signed off by BDO, Revolut’s auditors, final month.
Revolut reportedly faced concerns from U.Ok. regulators over the robustness of its inner monetary controls. In September, BDO’s audit of Revolut’s 2021 accounts was deemed “insufficient” by the Monetary Reporting Council, which stated that “the chance of an undetected materials misstatement was unacceptably excessive.”
The corporate, which has no bodily branches, affords digital banking, cash transfers, and cryptocurrency and inventory buying and selling via a single app. It competes with the likes of Wise, Monzo and Starling.
Based in 2015 by former Lehman Brothers dealer Nikolay Storonsky and software program developer Vlad Yatsenko, Revolut has shortly grown to turn into one among Europe’s largest fintech unicorns, with a valuation of $33 billion.
Revolut has been pushing onerous into abroad markets, specifically the U.S., the place it at present has over 500,000 shoppers. The agency has additionally opened operations in Brazil, Mexico and India. In November, Revolut introduced it has 25 million customers worldwide.
Nearer to dwelling, although, the corporate’s progress plans have been dealt some setbacks. Revolut has been pursuing a banking license within the U.Ok. for the previous two years, in an effort to supply extra of its revenue from lending exercise.
That course of has been a drawn out one, and it’s believed the wait is in reference to the delays to the publication of Revolut’s outcomes. Revolut has additionally confronted criticisms over an aggressive working tradition, which has reportedly led to departures of key regulatory and compliance executives.
