The CEO of Revolut Nik Storonsky claims his company broke even in November, just a month after Starling’s Anne Boden announced the same.
According to the latest public figures, the London-based Revolut posted a loss of £ 106 million last year.
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The losses for Revolut came despite Revolut’s revenue jumping by 180% to £163 million. Revolut has also seen a huge surge of retail customers with the total number increasing from 3.5 million to 10 million in 2019.
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.
This comes just month after one of Revolut biggest competitors in the UK announced break-even as well. The Starling Bank governed by CEO Anne Boden. “The reason Starling keeps powering on is that we don’t think like a bank. As per my original pitch, we are a technology company. Today, banking is seen as a tech business. Starling has played a huge part in making that happen,” says Anne Boden.
Revolut biggest income source is interchange fees which are generated each time a customer pays for something with their card. But it has been aggressively expanding into other areas of finance, such as investing and business banking.
“We have many revenue lines because we are a very well-diversified payments business,” Storonsky said.