Revolut managed to break even in November, marking a strong rebound for the digital banking start-up from the coronavirus crisis, according to CNBC.
Nik Storonsky, Revolut’s CEO and co-founder, said the firm saw a 40% dip in revenues in the early days of the pandemic, but added that business had improved significantly since then.
“We’re now actually 50% ahead in terms of revenues compared to pre-Covid levels,” Storonsky told CNBC in an interview Monday. “Gross margins increased significantly as well.”
“In terms of financials, we broke even in November and we’re doing much better compared to pre-Covid times,” he added.
Revolut’s most recent accounts were released in August, showing the firm more than tripled its losses to £106.5 million ($142.1 million) in 2019, despite a 180% increase in revenues to £162.7 million.
It’s not the first time Revolut has broken even; the company previously said it had done so in December 2018.
Whether Revolut can reach full profitability “depends on how fast we want to grow,” Storonsky added. Revolut now has over 13 million retail banking users and 500,000 business customers.
Storonsky said the firm is gradually making inroads into lending after obtaining a European banking license in 2018. Revolut’s credit product is currently live in Lithuania and Poland, and the firm expects to roll it out in most European markets next year.
“It does not make sense to have a banking license unless you lend,” Storonsky said. But, he added: “We’re very careful in terms of rolling out our credit capabilities.”
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
