BlocksInform
Aisha S Gani
Finance app Revolut Ltd. Realized its first annual profit in 2021 after having almost tripled its turnover, according to the deferred financial statements published on Wednesday. Income growth slowed to 30 per cent last year.
The London company reported a profit before tax of? 39.8 million (48 million dollars) in 2021 against a loss of? 220.7 million the previous year, with incomes that surged to? 636 million. The company reported that its main source of revenue was currency and wealth, surpassing payment cards. Gross margins went from 33 per cent to 70 per cent.
The revolt continued to grow at a slower pace in 2022, and incomes increased to approximately?A statement of 850 million. 2021 accounts were delayed by several months and have been late since December as a result of a quality review of the audit by the Financial Information Board.
We achieved our first full year of profit and demonstrated that we can accelerate the growth of our customers, at scale, and increase income in all our product lines," said Nikolay Storonsky, Chief Executive of Revolut, 38 years old.
Revolut, which was valued at 33 billion dollars in a round of financing in 2021, is one of the largest startups in Europe with backers, including softbank group corp.Vision Fund 2 & Global Tiger Management. Approximately 27 million global customers use the platform for payments, trading and other wealth management services.
Storonsky said in July that Revolut was profitable and had enough funding for two years, allowing it to sidestep a gruelling period for fintech fundraising that’s seen rivals such as Klarna cut billions of dollars from their market value
The company, which now makes the bulk of its money in Europe, plans to expand into new markets, including New Zealand, Brazil, Mexico and India. More than doubled its workforce in 2021, with 4,655 employees.
Other Insights
- Revolut launched in 2015 as a prepaid card offering cheap foreign-exchange fees, with Storonsky — a former derivatives trader at Credit Suisse Group AG and Lehman Brothers — handing out freebies at railway stations. Now he's doing business, crypto, and buying now, paying for the products later.
- In November, revolt announced a new instant messaging feature, in the context of its attempts to become Europe's response to the Chinese "superapp" wechat lifestyle.
- Revolut is waiting for the United Kingdom regulatory authority to approve its bank licence application, which it applied for in January 2021.
- Directors' total salaries increased from 580,000 to 3.7 million. This was mainly in the form of equity payments.
