The Strategist

UK's most expensive fintech startup Revolut triples spending in 2019

08/12/2020 - 07:10

The most expensive fintech startup in the UK, Revolut, spent three times more money in 2019 than a year earlier. This is partly due to the active expansion of the staff. At the same time, after the start of the pandemic, according to Wired, the company forced some employees to quit or agree to a pay cut.

Monito - Money Transfer Comparison via flickr
Monito - Money Transfer Comparison via flickr
British fintech startup Revolut spent £107m ($140m) before taxes in 2019, the Financial Times reported. The company's losses have more than tripled since 2018, when they totaled £ 33 million ($ 43 million).

The company's growth in expenses is mainly due to the increased recruitment of personnel, writes FT. Over the year, the number of employees has tripled - from 633 people to 2,261. The company has hired hundreds of people to strengthen its customer service and comply with regulations and laws. Despite the increase in losses, Revolut is not abandoning its announced goal of achieving profitability every month by the end of 2020. “Last year was dedicated to creating a structure to expand the business, so costs are not going to grow at the same level this year,” said Martin Gilbert, Chairman of the Board of Directors of Revolut.

The service's revenue also almost tripled year-on-year, from £ 58 million ($ 76 million) to £ 163 million ($ 213.6 million). Almost two thirds of this amount was commission from purchases made by holders of Revolut bank cards.

The company's revenue has been hit this year by a drop in currency exchange revenues as people have virtually stopped traveling due to the COVID-19 pandemic. The number of transactions with Revolut cards fell by 45%. In June, Wired reported, citing employees at the company, that the startup forced some employees to quit their jobs or agree to a pay cut. 


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