Revolut, a crypto-friendly trading app and one of the largest fintech companies in Europe, tripled its losses in 2019 despite notable revenue growth and new customers on the platform.
The London based company apparently recorded a total loss of more than £ 106 million (US $ 139 million), against about £ 33 million ($ 43 million) in 2018.
Nik Storonsky, Founder and CEO of Revolut, stressed that the massive losses in 2019 occurred despite a significant increase in the number of customers, reported CNBC on August 11th. “We increased daily active customers by 231% and the number of paid customers by 139%.” Storonsky pointed this out.
During 2019 Revolut also saw a sharp increase in its income. As reported Revolut’s revenue rose 180% in 2019, from £ 58 million ($ 76 million) in 2018 to nearly EUR 163 million ($ 213 million).
According to Storonsky, the main reasons for the enormous losses They were an aggressive investment in global expansion and new product offering. Revolut announced its ambitious expansion plans in October 2019. to announce Your partnership with Visa to expand your services worldwide in 24 new markets like those of Australia, Brazil, Canada, Japan, New Zealand, Russia, Singapore and the United States.
In August 2019 also Revolut launched a commission-free stock trading feature for its clients in the UK and Europe in an attempt to compete with runners like Hargreaves Lansdown AJ Bell.
Revolut has shown obvious signs of trouble over the past few months. In June 2020 The company laid off dozens of employees. While it was reported that the action It was a cost-saving measure amid the coronavirus crisis. A new report from CNBC says that Revolut’s business momentum was not affected since the company registered another three million users in 2020 despite the pandemic.
Revolut isn’t the only crypto company to post certain losses in 2019. As Cointelegraph reported, Canaan, a provider of Bitcoin (BTC) mining equipment listed on the Nasdaq, Earlier this year, a net loss of $ 148 million was reported in 2019. Galaxy Digital, a major cryptocurrency investment bank founded by former Goldman Sachs partner Mike Novogratz, continued to record losses in 2019, The fourth quarter of 2019 saw a loss of $ 33 million.