Need to Know
- The British fintech broke even in November, after a 40% dip in revenue early in the COVID-19 pandemic.
- This marks the second-ever time the company has broken even since its founding in 2015.
- Revolut has more than 13 million retail banking users and 500,000 business customers.
British neobank Revolut bounced back significantly from a dip in revenue earlier this year, breaking even in November for the second time ever in its five-year history.
Revolut, like many neobanks, struggled in the early months of the COVID-19 pandemic, having seen a 40% dip in revenue in the spring. But CEO and co-founder Nik Storonsky told CNBC that the company has rebounded substantially, saying in an interview that the company is now “50% ahead in terms of revenues compared to pre-COVID
“Gross margins increased significantly as well,” Storonsky said. “In terms of financials, we broke even in November and we’re doing much better compared to pre-COVID times.”
The announcement of Revolut’s rebound comes as the company announced it will start allowing businesses to accept online payments. This new acquiring solution is integrated directly within Revolut Business and allows businesses to see payments and banking information in the same place, giving it an advantage over competitors such as Stripe. Revolut’s online payments are available for business customers in the U.K., Austria, Belgium, Denmark, France, Germany, Ireland, Italy, Netherlands, Poland, Portugal, Spain and Sweden.
Revolut now has more than 13 million retail banking users and 500,000 business customers, and Storonsky says the company’s ability to reach profitability depends on how quickly it wants to grow. The majority of its income currently comes from interchange fees, which Revolut collects each time a customer pays for something with their card. But the company is expanding into other capacities, including investing, and plans to expand its lending capabilities, which are currently only live in Lithuania and Poland, to additional European markets next year.
Revolut’s revelation that it broke even in November comes just days after the company announced that it would be launching a web app in response to customer demand. While the web app offers limited capabilities compared to Revolut’s mobile app, customers will now be able to check their balance, freeze or unfreeze cards, and contact Revolut support using the web app.