After years of losses, British banking app Revolut lastly turned a nook final yr. Its revenues nearly doubled to £1.8 billion ($2.27 billion), serving to it flip a pre-tax revenue of £438 million ($553 million).
The information can be a aid for the fintech’s top-tier traders together with Index Ventures, Softbank Imaginative and prescient Fund 2 and Balderton Capital, who’ve collectively poured over $2 billion into the corporate since 2015.
Revolut’s surge in income was pushed by a 46% leap in prospects. Twelve million new prospects have been added, bringing the whole to 38 million throughout the now 38 international locations that Revolut operates in.
“Our customer base is expanding at impressive rates, and our diversified business model continues to fuel exceptional financial performance,” Nik Storonsky, CEO and co-founder of Revolut mentioned.
That leap in prospects powered a 59% enhance in card and interchange charges (to £486 million) and a 46% rise in FX and the usage of Revolut’s wealth platform, which incorporates crypto buying and selling, to £395 million.
It’s not all excellent news, nevertheless. Revolut has been engaged on securing a U.Okay. banking license since 2021, when it first utilized, and has repeatedly claimed that it might turn into an official financial institution “any day now.”
With out a banking license Revolut isn’t capable of harness its U.Okay. buyer deposits to supply complicated lending merchandise, nor can it boast of getting the identical buyer deposit protections as official banks.
Immediately Storonsky briefly addressed the continuing delays, stating: “We remain committed to our ongoing U.K. banking license application in addition to bringing the Revolut app to new markets and customers around the world.”
Revolut’s chairman Martin Gilbert additionally added: “We are continuing to work closely with the PRA (Prudential Regulation Authority) on our U.K. bank licence application.”
Nonetheless, with the U.Okay. on the eve of a dramatic basic election poised to swing the political panorama and introduce a Labour authorities with a brand new political agenda possible by the tip of the week, Revolut’s hopes to “imminently” safe a license could possibly be delayed as soon as once more.
Based on The Monetary Instances, the fintech is as a substitute engaged on a $500 million secondary share sale that can see current shareholders, together with workers, notice a few of their positive factors at an anticipated valuation of over $40 billion.
Revolut final accomplished a funding spherical in 2021 when Softbank Imaginative and prescient Fund 2 and Tiger World led an $800 million Sequence E funding spherical at a valuation of $33 billion.
