One of the biggest Fintechs in Europe and a crypto-trading app tripled its losses in 2019. Revolut was founded in 2015. The company posted a total loss of more than 106 million British pounds ($139 million). It is worth noting that its losses more than tripled despite growth in revenue as well as new customers. As a reminder, in 2018, the company lost about 33 million pounds ($43 million).
Last year, the company increased its daily active customers by 231%. Furthermore, the number of paying customers grew by 139%. As a result, Revolut’s revenues jumped 180% from 58 million British pounds ($76 million) in 2018 to nearly 162.7 million British pounds in 2019.
Revolut and the Main Reasons for the Losses
As mentioned above, Revolut posted a total loss of more than $139 million. It is important to understand why the London-based company lost millions of dollars. The aggressive investment in global expansion and new product offerings are the main reasons.
Last year, Revolut revealed its ambitious expansion plans. 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.
Furthermore, Revolut also launched a zero-fee stock trading feature to customers in the United Kingdom and other parts of Europe in 2019. The company wanted to compete with brokers like Hargreaves Lansdown and AJ Bell.
People should keep in mind that the London-based company is not the only crypto-related firm that suffered losses in 2019. For example, a crypto mining equipment supplier Canaan which is listed on Nasdaq also posted losses. The equipment supplied reported a net loss of $148 million for 2019.
Importantly, a major crypto investment bank Galaxy Digital posted a $33 million loss in the fourth quarter of 2019.
On the one hand, due to Revolut’s decision to expand its services, it lost millions of dollars. On the other hand, global expansion is vital for the future of the company.
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