British fintech company Revolut reported losses in its financial performance for 2020 and prepares for a new round of financing.
June 22, 2021, | AtoZ Markets – UK's largest fintech Revolut has begun negotiations on a new round of financing, which could raise the company's valuation to $20 billion, Bloomberg writes, citing sources close to the negotiations.
Details are unknown as negotiations are at an early stage. The startup itself did not officially comment on rumors about a new round of investments. Earlier in June, Revolut CEO Nikolai Storonsky admitted that the company is considering further fundraising. However, he did not disclose details.
If the deal really takes place, then Revolut could become the most expensive fintech startup in the UK, Bloomberg notes. Investments are being negotiated despite the unprofitable project.
Revolut's operating losses continue to rise
According to Bloomberg, Revolut's operating losses doubled in 2020 to $280 million. It is reported that they are of an administrative nature, as the company increased personnel costs.
However, revenue also increased. So, over the past year, the company's revenue increased by 57% to $361 million. A year earlier, the revenue of a fintech startup was $229 million.
The user base has grown from 10 million to 14.5 million, the number of business customers - by 127%.
Data: Revolut annual report.
Earlier Storonsky said that Revolut intends to enter the markets of Latin America, the Philippines, Indonesia, South Korea, as well as India. At the same time, in some countries, Revolut may take the path of acquisitions in order to speed up the process of obtaining banking licenses, writes Bloomberg.
Read also: Revolut Applies For UK Banking License to Expand Financial Products
It is noteworthy that cryptocurrency exchanges are preparing to expand into the Indian market in a similar way despite the uncertainty in the regulation of the local crypto market. At the same time, the exchanges are studying the need to create a subsidiary or take over local firms.
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