Digital banking startup Revolut has posted losses of over £106 million ($139 million) for 2019, up 300% on its losses for the previous year.
The figures compare to a loss of £32.9 million in 2018 for the London-based firm, which had been pursuing an aggressive growth strategy to attract new users. Despite growth in both user numbers and topline revenue, the losses will nevertheless be a blow to the company.
Revolut founder and CEO Nik Storonsky was quoted by CNBC saying he was satisfied with the company’s performance in 2019: “While we still have some way to go, we are pleased with our progress in 2019. We increased daily active customers by 231% and the number of paying customers grew by 139%.”
Revolut has said the losses were a result of increasing investment in expanding to new territories, as well as costs incurred in the development of new products. In recent months, the firm has been pushing its app to new markets including Singapore, Australia and the U.S., after launching its commission-free stock trading offer in 2019.
We’ve fully launched in Australia 🇦🇺
If you have Revolut, and your friends or family in Australia have Revolut, you can now send money to each other instantly, and at no cost.
Tag an Aussie friend to let them know
More on the blog: https://t.co/Oed8RRZmCM
— Revolut (@RevolutApp) August 12, 2020
Revolut chairman Martin Gilbert said the results over the period had put the company on a sustainable path to continued growth.
“Both 2019 and the first months of 2020 have been periods of significant achievement and expansion for Revolut, putting the company on a clear path to long-term sustainable growth. Our continued growth and expansion during the pandemic has shown the resilience of our strategic plans and we are pleased that these plans are further endorsed by new investors.”
Revolut is regarded as one of Europe’s leading unicorns, after securing a valuation at $5.5 billion in a recent private funding round. This puts the company on a level with Checkout.com and Klarna among Europe’s largest fintech startups.
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