Revolut, Europe’s most valuable fintech, is about to exceed £1.5B ($1.9B) in annual revenue despite regulatory challenges. The fintech firm’s financial ascent comes amidst a climate of rising interest rates. An investor presentation seen by Bloomberg containing unaudited financials indicated Revolut’s monthly revenue averaged around £125M in the first half of 2023. This puts the company well ahead of its £850M revenue in 2022.
Revolut’s User Growth and Valuation
Revolut’s aggressive expansion has seen it add up to 300,000 users weekly, pushing its global customer base close to 40 million.
For investors, Revolut’s journey has been a roller coaster. Valued at $33 billion in 2021, the company has been grappling with the prolonged process of obtaining a banking license from UK regulators. This has been further complicated by the firm’s auditors expressing concerns over the completeness of Revolut’s 2021 revenue data. Moreover, the company is behind schedule in filing its audited 2022 accounts.
Despite these challenges, Revolut has successfully diversified its offerings. The company has significantly increased its interest income in Europe and reduced its dependency on cryptocurrency activities.
The UK Banking License Saga
Under CEO Nik Storonsky, Revolut’s pursuit of a UK banking license has been a focal point. The license is critical for expanding services like credit cards and loans in the UK. However, the application process has been marred by evolving regulatory requirements and internal restructuring, including resolving issues with shareholder SoftBank.
Storonsky’s Frustration and Leadership Changes
Storonsky has publicly voiced his frustration with the UK’s business environment and the protracted licensing process. The company has also seen significant executive turnover, including the departure of key figures such as CFO Mikko Salovaara. Despite these setbacks, Revolut has appointed Francesca Carlesi as the CEO of its UK division, a move seen as pivotal in securing the banking license.
