Revolut, a UK-based firm which offers a range of fintech services, has reported a 57% increase in revenue from 2019 to 2020. At the same time, the company saw its losses grow from £106.5 million to £207 million, according to a release by the company.
The loss increase follows a pattern which saw the company triple losses from 2018 to 2019. Although losses have continued to mount year-to-year, Revolut is still pulling in investors, with the company rumored to be preparing a $250 million fundraising round with a valuation of $10 to $15 billion, according to Finextra.
“As the extraordinary circumstances of 2020 drove the trend towards digital financial management we continued to innovate for customers to make their financial lives easier and accelerate daily use. We launched 24 new retail and business products, expanded into the US, Japan and Australia and launched banking services in Lithuania, all while significantly improving our profitability,” founder and CEO Nikolay Storonsky said in a press release statement Monday.
Revolut offers a slew of financial technology tools and services on the platform, including free account creation, single-use spending cards, cross-border money transfer and bill splitting. The company also states that it can teach financial wellness to children, help users budget smarter and decrease the time it takes to achieve money goals.
Revolut has already raised over $900 million in funding since being founded by Nikolay Storonsky and Vlad Yatsenko in 2014. The investments have gotten larger in recent years, with DST Global leading a $250 million Series C in 2018 and TCV leading a $500 million Series D in 2020.
The platform’s payments volume decreased after March of last year, but growth in their Subscriptions, Wealth & Trading and Revolut Business services offset this, and saw a 41% increase in adjusted revenue in the second half of 2020.
The fintech company has taken strides towards its own financial wellness in the past year, net profitability despite increased losses, with gross profits increasing 215% from £39m in 2019 to £123m in 2020. Revenue growth and improved gross margins also reduced quarterly adjusted operating losses from £55m in Q1 2020 to £6m in Q4 2020, a 90% decrease.
While Revolut’s non-adjusted operating losses reached $277 million in 2020, the majority of expenses were the result of administrative spending, including the 2,200 employees at the company. Aside from the 14.5 million personal customers, the platform also serves over 500,000 companies through its Revolut Business service.