Revolut, a British neo-bank and crypto-exchange company, has announced a remarkable 33% increase in revenue in 2022, despite the current downturn in the crypto market. The fintech firm has gained a large market share and an extensive user base in a relatively short period, even during the crypto winter.
What led to Revolut’s growth?
Revolut’s success has been attributed to its effective diversification of revenue streams by offering services across various financial markets, as well as product innovation. With a focus on good user experience, customer retention, and more than half a million downloads since its inception, the brand has established itself as a pioneer. It has also attracted new users by providing easy access to loans, debit/credit cards, and expanding into cash-dominant markets in Asia and Africa.
Through technological integrations, Revolut provides users with useful tools, analytics, and insights to help them track their finances. Along with attractive discounts and offers, the brand has lured a lot of small businesses to become customers.
Despite the tumultuous crypto market and the 2022 downturn, Revolut’s business has not been impacted, as crypto services account for less than 10% of its revenue. The firm has reported revenue of £850 million (approximately $1.03 billion) in 2022. The fast-paced growth has established the company as one of the biggest fintech firms in the world, with a valuation of approximately $33 billion based on its last funding round.
The company’s chairman, Martin Gilbert, said, “Such strong financial performance and profitability demonstrate Revolut efficiently moving from the ‘start-up’ that is only focused on growth, to the ‘scale-up’ looking to grow profitably.”
The company faced a few setbacks along the way, such as accusations of poor work culture with long working hours for employees. However, it has taken steps to address these challenges and has emerged stronger, with a more than 100% increase in the number of employees in a short period.
Revolut also awaits a banking license from the UK, which would help it expand its services and claim that they are in the final stage of the process. This would allow Revolut to grow significantly in the banking sector and expand into other countries such as Brazil, Mexico, and New Zealand.