Revolut’s 2022 revenues grew by 33% despite crypto winter

LONDON, March 1 (Reuters) – Fintech firm Revolut made its first full-year revenue in 2021 and registered a 33% income leap final 12 months, its finance chief instructed Reuters.

Revenues on the firm elevated to greater than 850 million kilos ($1.03 billion) in 2022 on the again of funds, subscriptions and enterprise accounts, stated chief monetary officer, Mikko Salovaara, regardless of a downturn in crypto, which is a key a part of the group’s enterprise.

“We have now constructed a robust momentum,” the 31-year-old government stated in an interview at Revolut’s headquarters in London.

The corporate has simply signed off on the 2021 annual accounts after months of delays because it changed its inner accounting techniques after the Monetary Reporting Council (FRC), a U.Okay. physique answerable for regulating auditors, discovered Revolut’s audit “insufficient.”

“Our accounting techniques wanted substitute,” Salovaara stated. “We had been held to the very best doable accounting requirements.”

Revolut will retain accounting agency BDO for the 2022 audit, it stated.

Revenues from its crypto enterprise shrank in 2022 because the crypto-downturn hit the agency. The crypto enterprise accounted for about 5-10% of the whole revenue final 12 months, Salovaara stated.

The corporate swung to a revenue of 26 million kilos in 2021 helped by growth in cryptocurrencies buying and selling, its accounts present.

Chief government officer Nikolay Storonsky has beforehand stated the agency was worthwhile in 2021. In 2020, it made a lack of 223 million kilos, in keeping with Revolut’s accounts.

Salovaara declined to say whether or not the corporate can be worthwhile in 2022.

The fintech firm expects to publish its 2022 accounts by June, however it would possibly take longer.

SELF-SUSTAINED

Revolut was valued at round $33 billion within the final funding spherical in 2021, making it then Britain’s Most worthy start-up. Since its 2015 debut, it has raised about $1.7 billion from SoftBank and others.

Salovaara, who joined Revolut in 2021 from funding agency 3G Capital, stated that the corporate doesn’t plan to fundraise quickly.

“We’re self-sustained,” he stated. The agency will “finally be a public listed enterprise, however it’s not a precedence.”

Publication of the accounts would possibly pave the best way for a U.Okay. banking license which Revolut utilized for 2 years in the past.

“We’re on the very closing stage of the method,” the CFO stated including that the relationships with the U.Okay. regulators have been “affordable”.

Revolut is more likely to go for an “authorisation with restriction”, an individual near the matter instructed Reuters in January. This imposes sure limits on the enterprise.

Revolut’s complete employees prices elevated by 9% in 2021, the filings present. The variety of staff doubled in 2022 to greater than 6,000, the corporate stated.

It goals to broaden internationally, together with in India the place it acquired a foreign-exchange agency Arvog Foreign exchange, in addition to in Brasil and Mexico. It’s going to launch in New Zealand within the coming weeks.

($1 = 0.8288 kilos)

Reporting by Stefania Spezzati. Modifying by Jane Merriman

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