Revolut, the crypto-friendly fintech firm is facing quite a considerable amount of losses since 2018 and faced approx. 200% losses in 2019.
Despite the losses, the crypto-friendly British fintech firm is at par comparing to competitors like Klarna and Checkout.com, which are having the same valuation of around $5.5 billion.
Earlier this year, Revolut received the funding of almost $580 million from the Silicon Valley-based venture capital firm TCV, an early investor in Facebook and Netflix.
The London-based $ 5.5 billion consumer-facing fintech startup believes that the number of international investments and new offerings is the root cause of such shortfalls.
During 2019, the company launched new offerings to increase its product portfolio. The commission-free stock trading feature has been added in the app to compete with brokers like Hargreaves Lansdown and AJ Bell. Along with the new product submissions, the establishment expanded its commerce in countries like the U.S., Singapore, and Australia.
Revolut Tackling Challenges & On Rising Mode
Reportedly, despite the rising losses, Europe’s most highly-valued fintech firm is acquiring many customers and has increased its revenue streams simultaneously.
The latest annual report for the year ended 31 Dec 2019 shows, Revolut faced a loss of $139.6 million (£106.5 million) in 2019 which is up by $42.83 million (£32.9 million) comparing 2018. Though, the company made revenues of £162.7 million in 2019 and £58.2 million in 2018, which is 180% up from 2018.
Likewise, the user-base has also tripled and climbed up from 3.5 million in 2018 to 10 million in 2019. Reportedly, the number of daily paying customers is increasing by 139% and active customers by 231%.
On the winning side, in 2018, the firm also secured a European banking license from the Lithuanian central bank. The banking license may help the company to offer various other services like loans to customers. Additionally, the add on of a U.K. banking license is also on the company list.
Revolut deals globally in banking and trading services where users can also buy and sell Bitcoin and Ethereum with more cryptocurrencies to be added soon, as per the official website.