The crypto boom helped fintech Revolut turn a profit for the first time in 2021, according to long-delayed results from one of Europe’s most valuable startups.
The London-based company on Wednesday reported a net profit of £26m in 2021 compared with a loss of £223m the previous year. Revenues in 2021 will almost triple to £636 million.
Revolut has evolved from a low-cost money transfer service to offering bank accounts across Europe through a Lithuanian banking license. It is also registered as an e-money institution in the UK. The round of funding in the summer of 2021 valued the group at $33bn and ensured that it would not have to return to the market as the value of the technology collapsed last year.
About a third of its revenue comes from its cryptocurrency trading business, Revolut said. Fintech first entered crypto in 2017, ahead of its competitors.
The number of retail customers of the group increased by almost 50 percent to 16.4 million in 2021 and now has more than 27 million. Revenue is expected to rise by 2022, Revolut said, reaching more than £850 million. The group did not disclose profits last year.
“Profitability in 2021 despite the economy experiencing a prolonged shock due to global lockdowns, continued travel restrictions and the effects of Covid-19,” said executive chairman Nik Storonsky. “At the same time, the rapid shift to digital services and remote working is increasing the number of customers and the number of people using our apps.”
However, Revolut has suffered growing pains in its efforts to challenge traditional banks. Insiders have revealed a hard-charging culture and the company has been hit by high-profile departures of senior compliance staff.
The group’s auditor, BDO, has pushed fintechs to improve internal controls.
Revolut was required to submit accounts for the year ending December 2021 to Companies House in September 2022. The fintech was then given an extension until the end of December – a deadline it also failed to meet.
Revolut’s push from crypto failed last year, when prices for many digital currencies collapsed and FTX, one of the most popular players in the new industry, collapsed.