London-based fintech unicorn Revolut tripled its revenues to £162.7 million ($213.1 million) in 2019 but also tripled its losses, compared with 2018.
The challenger bank saw rapid customer growth with 7 million new users added in 2019 and an additional 3 million in 2020 so far, taking the company to 13 million users overall.
“Despite the current economic challenges, we remain focused on our goal of moving towards profitability,” Revolut CEO and cofounder Nik Storonsky said.
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London fintech challenger bank Revolut tripled its revenues to £162.7 million ($213.1 million) in 2019 but also saw losses triple to £107.4 million ($140.6 million), it said in its annual report published Tuesday.
The unicorn startup, one of Europe’s most valuable startups, grew customer numbers from 3.5 million to 10 million during 2019. As of the end of July, it has 13 million users, it said. CEO Nik Storonsky has set a goal of reaching 100 million customers in the next five years and breaking into the North American and Pacific markets.
The startup allows users to spend money worldwide in 150 currencies at a real-time exchange rate, with no fees, through a debit card. It generates 99% of its revenues in the UK.
User deposits hit £2.2 billion ($2.88 billion) in 2019, up from £1 billion ($1.31 billion) at the end of 2018, it said.
Expenses at the company increased nearly fourfold to £92 million ($120.5 million), driven by increased staffing costs. The startup grew from 633 employees at the end of 2018 to 2,261 employees at the end of 2019.
In February, the company raised $500 million in Series D funding led by Technology Crossover Ventures (TCV). This round was extended in June to include an $80 million investment from TSG Consumer Partners, bringing the round’s total investment to $580 million. Founded in 2015, Revolut is one of Europe’s most valuable startups, with a $5.5 billion valuation from $917 million in total funding.
Like fellow challenger banks Monzo and Starling Bank, the company was hit by the coronavirus pandemic, but doesn’t see the uncertainty hurting its business long-term.
“Due to COVID-19, Revolut experienced a decline in interchange revenue driven by fewer transactions and a high portion of low fee domestic transactions,” the company said in its report. “As a result, while growth has slowed because of the pandemic, Revolut has, and will continue to have, a comfortable level of headroom above its regulatory capital and liquidity requirements.”
The company will plough on with its international expansion plans through the rest of 2020 and beyond.
“While we still have some way to go, we are pleased with our progress in 2019,” Revolut CEO and cofounder Nik Storonsky said. “We tripled our revenues, increased retail customers from 3.5 million to 10 million, increased daily active customers by 231% and the number of paying customers grew by 139%.
“Since the beginning of the year, we have focused on further developing innovative products for our customers, continuing to introduce Revolut to new markets, and increasing our revenue streams across the business, while reducing our operational costs,” he added. “Despite the current economic challenges, we remain focused on our goal of moving towards profitability.”SEE ALSO: UK fintech startup Starling Bank triples customer deposits in 9 months and plans to break even by 2021 despite COVID-19 pandemic
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