Revolut’s website promises to deliver “All your money needs in one app.” With its losses mounting, the London-based digital bank may need to tap into its corporate reserves to keep up with its expansion plans.
The company posted a total loss of $139.6 million (£106.5 million) in 2019 — up from £32.9 million in 2018 — according to CNBC. Revolut attributed the losses to its expansion into new markets and the introduction of new products.
“While we still have some way to go, we are pleased with our progress in 2019,” Revolut Founder and CEO Nik Storonsky said in the CNBC report. “We increased daily active customers by 231 percent and the number of paying customers grew by 139 percent.”
The company’s revenues actually tripled last year, increasing 180 percent to £162.7 ($213 million) from 2018.
Last month, Revolut gained $80 million in new funding, valuing the company at $5.5 billion. The latest infusion of cash came from TSG Consumer Partners, a San Francisco-based private equity company. Revolut said the TSG cash was part of the funding announced in February, bringing the total raised in that round to $580 million. Other investors included Menlo Park, California-based TCV and Index Ventures, the global venture capital firm with dual headquarters in San Francisco and London, along with half a dozen others.
Founded in 2015, Revolut began by offering prepaid debit cards that allowed users to avoid foreign exchange fees while traveling abroad. The FinTech has since expanded to offer business banking. It now has more than 12 million customers.
The FinTech’s app-based bank accounts allow customers to send and receive money and use other consumer-oriented features. The startup offers its digital banking features with a debit card that users can attach to their accounts and cellphones.
In June, the company announced an arrangement that would let American Express customers link their accounts to the Revolut smartphone app.