Revolut to Report over $2 Billion Revenue in 2023, Adds 300K Users Weekly

<p>The digital
banking startup Revolut has defied the odds in a turbulent year for financial
technology companies. The London-based firm is on track to generate over $2
billion in revenue for 2023, according to leaked financial documents seen by
Bloomberg.</p><p>This
represents astonishing growth for the company. Revolut's monthly revenue hit
around $150 million in the first half of 2023, putting it far ahead of the previous
year's total revenue of $1 billion.</p><p>Revolut Sees Strong Growth
despite Challenging Year for Fintechs</p><p>This growth is driven by a surge in new customers, with Revolut now adding up to 300,000
users per week, expanding its global customer base to close to 40 million. This remarkable achievement is occurring despite the mounting competition from both incumbent banks and
other fintech challengers.</p><p>The results
provide some relief to Revolut's investors following a tumultuous period. While the
company continues its efforts to secure a UK banking license and has faced criticism
over delayed financial filings, it's worth noting that <a href="https://www.financemagnates.com/forex/revolut-takes-on-european-stock-market-with-zero-fees/" target="_blank" rel="follow">new products such as stock trading</a> and
interest income are driving profits, with the latter now exceeding triple the revenue from foreign
<a href="https://www.financemagnates.com/terms/e/exchange/">exchange</a>.</p><blockquote><p lang="en" dir="ltr"><a href="https://twitter.com/hashtag/Bloomberg?src=hash&amp;ref_src=twsrc%5Etfw">#Bloomberg</a> announced <a href="https://twitter.com/hashtag/Revolut?src=hash&amp;ref_src=twsrc%5Etfw">#Revolut</a>'s expected revenue of £1.5b ($1.9) is for FY 2023. This is good but expected in a higher interest environment.I expect 2022 results to be filed with CH before 2024.300k weekly new users is huge as well as almost 40m customer number.Crypto revenue… <a href="https://t.co/Bp2ywaDOYW">pic.twitter.com/Bp2ywaDOYW</a></p>— Max Karpis (@maxkarpis) <a href="https://twitter.com/maxkarpis/status/1737414198370459791?ref_src=twsrc%5Etfw">December 20, 2023</a></blockquote><p>Although
the official results <a href="https://www.financemagnates.com/fintech/third-times-a-charm-why-revolut-cant-seem-to-publish-its-financials/" target="_blank" rel="follow">were supposed to appear a month ago</a>, Revolut is once again
delaying their publication. For the fintech, however, this has already become
something of a tradition. The results for 2021, <a href="https://www.financemagnates.com/fintech/revolut-earned-71m-in-2021-marking-first-annual-profit-in-history/" target="_blank" rel="follow">which showed a net profit of
$71 million</a> for the first time, were only published in March 2023.</p><p>To Become a "Supper
App"</p><p>Revolut
aims to become Europe's first financial "super app", offering
banking, trading, shopping, and more from one platform. This ambition has led to
rapid expansion and executive shuffling. While this causes short-term growing
pains, the strategy seems to be paying off in spades based on the latest
financials.</p><p>In
November, the company appointed Francesca Carlesi, a seasoned banking veteran, <a href="https://www.financemagnates.com/executives/moves/revolut-hires-uk-ceo-ahead-of-banking-license-approval/" target="_blank" rel="follow">as
the new CEO of the UK</a>. This key hire could help Revolut finally land its <a href="https://www.financemagnates.com/fintech/paving-the-path-to-uk-banking-license-revolut-strikes-deal-with-softbank/" target="_blank" rel="follow">elusive UK
banking charter in 2023</a>. If so, it would allow the firm to accelerate growth by
launching credit cards, loans, and other products for its British users.</p><p>While
traditional banks stumble, Revolut's huge revenue growth shows the resilience
and potential of digital-first financial services. The future looks bright if
the company can smooth out its regulatory issues and executive team. Revolut
may achieve its goal in becoming Europe's premier financial hub.</p><p>Fintechs in Distress</p><p>Revolut's release
of its 2023 results is a key indicator for the industry, particularly against
the backdrop of declining valuations in European technology and financial
technology sectors over the last year, influenced by broader macroeconomic
factors.</p><p>Data from
early 2023 indicated a decrease of 30% in global <a href="https://www.financemagnates.com/terms/f/fintech/">fintech</a> funding, <a href="https://www.financemagnates.com/fintech/fintech-funding-falls-30-worldwide-to-95b/" target="_blank" rel="follow">dropping to $95
billion</a>. Further analysis revealed that fintech in the EMEA region experienced
a significant downturn <a href="https://www.financemagnates.com/fintech/fintech-in-distress-emea-sector-faces-major-funding-crunch-in-h1-2023/" target="_blank" rel="follow">in the first half of 2023</a>, with investments plummeting 50%. The KPMG-prepared Pulse of Fintech report detailed these
figures, noting a total investment of $52.4 billion across 2,153 deals.</p><p>In
contrast, UK payment fintech companies are experiencing a somewhat more
positive trajectory. However, the European fintech sector is grappling with substantial funding challenges due to adverse
macroeconomic factors. High inflation, escalating interest rates, recession
concerns, and persistent market uncertainty have led investors to exercise
greater caution, particularly in sectors characterized by high risk and growth
potential, such as fintech.</p>

This article was written by Damian Chmiel at www.financemagnates.com.