Revolut Ltd is a fintech company in London, UK and one of the largest startups in Europe, offering a range of banking and payment services through a mobile app and currency cards. Their services include currency exchange, Mobile Banking, Card Payments, Money Remittance, Foreign Exchange, insurance, and more. They favour individuals, freelancers, and small and medium enterprises, and have a global presence across North America, Europe, and Asia-Pacific.

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Brief Overview

Founded – 2015
Founders – Nikolay Storonsky, Vlad Yatsenko
Location – London, England, UK
Former name – Revolut
Operating Status – Active
Operating In – Fintech Startup
Legal Name – Revolut Ltd.
Total Revenue – €375 Million (Wikipedia)

About Revolut Company

Revolut is available in 47 countries, including every country in the EU and EEA. The main origin of the company is in London United Kingdom. Revolut made its debut in India in April 2021, after building on previous successful launches in Singapore and Australia in 2019, as well as in the US and Japan in 2020. Revolut offers financial services designed to simplify and improve the way people manage their money like Revolut Mobile Banking, Card Payments, Money Remittance and Foreign Exchange.

Revolut Mission

Revolut company’s primary mission is to continuously simplify, enhance, and add value to all aspects of financial management, making them significantly more convenient and beneficial for everyone, every single day. To accomplish this mission, Revolut has a workforce that reflects the rich diversity of our customer base.

Revolut Success Story

1. The journey of Revolut was started in 2015 by Nikolay Storonsky (CEO and Founder) and Vlad Yatsenko (CTO – Co-Founder) operating in London a fintech incubator.
2. After that In 2017 Revolut launched on different platforms like Business, and Revolut Premium, and entered the cryptocurrency market, starting with Crypto Trading in EEA.
3. In 2018, Revolut secured $250 million, achieving a post-funding valuation of $1.7 billion, making it unicorn. By December 2018, it obtained a Challenger bank license from the European Central Bank and an Electronic Money Institution license from the Bank of Lithuania for deposits and credits for customers.
4. In 2019, Revolut introduced commission-free stock trading with the New York Stock Exchange and Nasdaq and made key hires with traditional banking experience. They made their first expansion into Australia and Singapore. In October 2019, a global partnership with Visa expanded its reach to 3500 new workforce in 24 markets.
5. By February 2020, a funding round valued Revolut at £4.2 billion, making it the UK’s most valuable fintech startup. They Launched their app in the USA and Japan and read to 14.5 M users. In March, Revolut launched in the United States, followed by a debut in Japan in August. By the end of the year, the company gained profitability.
6. In January 2021, Revolut applied for a UK banking license and later sought a bank charter in the US. In July, Revolut raised $800 M, resulting in a $33 bn valuation, with investments from SoftBank Group and Tiger Global Management. Revolut Company brought about £636 million in revenue in 2021 which was a huge profit for the organization.
7. In January 2022, Revolut launched in 10 European countries as a bank. In March Revolut’s public stance against the Russia-Ukraine war, was accompanied by a substantial donation to the Red Cross Ukraine appeal. At that time, it had 18 million global customers and 150 million monthly transactions. In September Revolut UK, witnessed a cyberattack exposing the data of 50,000 customers, prompting regulatory action.
8. In January 2023, Revolut shifted its Irish customers to an Irish branch, aiming to compete with traditional banks. Revolut Bank started offering cryptocurrencies in the UK and European Economic Area in 2023. In May the Bank of England poised to reject Revolut’s UK banking license application. By July, Revolut expanded to 30 million customers across 37 countries.
9. Revolut app launches in New Zealand with over 26k Kiwis to access free foreign currency exchange ad payments.

Revenue And Profit

In 2021, Revolut experienced substantial financial growth, with revenue surging from £220 million in 2020 to £636 million.
The company also achieved a remarkable turnaround in its net income, reporting £26 million in profit compared to a £223 million loss in the same year. Gross margin saw significant improvement, increasing from 33% to 70%.
Revenue sources diversified, with cards and interchange contributing 23% £149 million, subscriptions 17% £107 million, and foreign exchange and wealth services representing the majority at 55% £349 million.
Shortly after securing around $45.5 million in initial investments from its UK-based parent company, Revolut India announced an upcoming acquisition.

Revolut Challenges

Revolut, amid rapid growth, faced the dual challenge of enhancing user onboarding while combating fraud.
The fintech company was confronted with several controversies, including delayed financial filings, EU regulatory breaches, and an aggressive workplace culture.
In 2020, despite a 34% revenue increase to £222 million, Revolut posted a £208 million loss. Problems extended to Lithuania, where it holds its EU banking license, with parliamentary investigations and penalties for various issues.
A flaw in its US payment system led to a $20 million loss to organized criminal groups. Despite revenue, Revolut reported a record £167 million net loss in 2021. That is affecting the customers in the United States.

Closing Thoughts

Revolut’s journey in the world of fintech touches remarkable growth and notable challenges. From its humble beginnings in London to becoming a global powerhouse in financial services, the company’s mission to simplify and enhance financial management remains at its core. Despite facing regulatory issues, workplace controversies, and financial challenges, Revolut’s commitment to innovation and customer-centric solutions continues to be the future of banking. With millions of users worldwide and a diverse range of services, Revolut UK stands as a transformative potential of fintech, always managing money more convenient and beneficial for everyone.

REFERENCES:

“Revolut, Revolut reports first full year of profit“
“Revolut – Story, Revolut: can the chancellor’s fintech favourite fix its image problem?“
“Revolut onboards 12% more users“