Crypto-Friendly Trading App Lost Millions of Dollars

The London-based company Revolut lost millions of dollars in 2019. Revolut is a crypto-friendly trading app as well as one of the biggest fintechs in Europe.

Based on the information provided by the London-based startup, its losses more than tripled in 2019. It is worth noting that, Revolut posted a total loss of more than 106 million British pounds ($139 million). As a comparison, in 2018 the company lost about 33 million pounds ($43 million).

Interestingly, its losses more than tripled despite growth in revenue and new customers. In 2019, Revolut increased daily active customers by 231%. Moreover, the number of paying customers grew by 139%.

Notably, one of the biggest fintechs in Europe also saw a sharp increase in revenue. For example, Revolut’s revenues in 2019 jumped 180% from 58 million British pounds ($76 million) in 2018 to nearly 162.7 million British pounds.

Crypto-friendly trading app and financial results

Interestingly, despite growth in revenue and new customers, the London-based company posted a total loss of more than $139 million. Notably, the main reasons for the mounting losses were an aggressive investment in global expansion as well as new product offerings.

As a reminder, Revolut revealed its ambitious expansion plans in October 2019. The company partnered with Visa to grow its services in various countries such as Australia, Canada, Japan, Brazil, Russia, New Zealand, the United States, and Singapore.

Moreover, the same year Revolut also launched a zero-fee stock trading feature for customers in the United Kingdom and other parts of Europe. The London-based company wanted to compete with brokers like Hargreaves Lansdown and AJ Bell.

Notably, Revolut is not the only crypto-related firm that suffered losses in 2019. A crypto mining equipment supplier listed on Nasdaq also posted losses. Canaan reported a net loss of $148 million for 2019. Also, a major crypto investment bank Galaxy Digital posted a $33 million loss in the fourth quarter of 2019.