The media reports that the British fintech company Revolut is aiming to generate revenue of $1.9 billion in 2023.
In the first six months of this year, the mentioned firm recorded monthly revenue, the average of which is about $158 million. The relevant information was published by the media with reference to the content of presentations for investors. The company’s financial results for the first half of 2023 indicate that the goal of an annual profit of $1.9 billion is realistic. Revolut’s revenue exceeded the $1 billion mark last year.
At the beginning of this year, the company’s income from business in the EU, where it has a banking license and can provide lending services, was three times higher than income from currency exchange. At the same time, the firm’s activity level in the cryptocurrency industry has decreased. Currently, this line of business of the brand has a share of less than 5% of the total revenue structure.
Also, the media, citing insiders, report that the company’s user base increases by about 300,000 people every week. Currently, the firm serves almost 40 million customers worldwide.
At the same time, the report for investors describes the company’s interim results for 2023 as a rare reprieve for its sources of financing. Revolut has made significant efforts to obtain a banking license in the United Kingdom this year. Also in 2023, the company’s auditors stated that they could not verify the completeness of some information about the firm’s income for 2021.
The media drew attention to the fact that Revolut was several months late in providing a verified version of last year’s reports. It is expected that this information will be published shortly. A representative of Revolut declined to comment on the mentioned issue in response to a media request.
Journalists, citing insiders, reported that regulators initially warned Revolut that the licensing process in the United Kingdom would last two years. The reality in this case turned out to be more complicated. The company’s efforts to obtain a British banking license will soon turn three years old, and this is clearly not the date that creates a reason for celebration. Revolut is currently working to meet the requirements of the Prudential Regulation Authority of the Bank of England (PRA).
Meaghan Johnson, a fintech consultant, said during a conversation with media representatives that next year the company wants to be able to add the word Bank at the end of its name. The expert also noted that a successful solution to the issue of obtaining a license will provide Revolut with access to many new areas of products that the brand will be able to delve into.
In the fall, the media reported that the departure of several top managers from the company prompted the PRA to demand that the firm expand the board of directors by adding members who have experience in the spheres of technology and banking.
According to insiders, Revolut founder Nick Storonsky complained to board members and top managers about a significant difference in the rhetoric of leading British politicians declaring a positive perception of the brand, and the Bank of England, which provided minimal indication of when the coveted license could be obtained, if it is possible in principle. He is reportedly facing what can be described as outbursts of frustration.
In the first half of 2023, Revolut found itself in the zone of the echo of the aftermath of the collapse of several American banks. The current economic climate, in which there is a tendency for venture capital financing to decline, also cannot be described as favorable. Against the background of modern realities, concerns are growing about the ability of fintech companies to raise cash if necessary.
As we have reported earlier, Revolut Launches New Solution for Businesses.