For 2019, the digital challenger bank posted an after-tax loss of £107.4 million.

Revolut, the London fintech and neo bank, published its annual report for 2019 today. It reported a rather sizable loss of £107.4 million for the year. This was more than three times its loss during 2018, which was £32.8 million. (Yahoo Finance)

However, in a nod towards growth, the fintech recorded a sharp growth in revenue to £ 162.7 million for 2019, up 180% from 2018 revenues of £ 58.2 million.

Founded in 2015, Revolut is one of the new breeds of European fintechs that have garnered impressive valuations. A funding round earlier this year valued Revolut at $ 5.5 billion.

Revolut 2019 progress

“While we still have some way to go, we are pleased with our progress in 2019,” said founder and chief executive Nikolay Storonsky (picture above) said in a statement.

“We tripled our revenues, increased retail customers from 3.5 million to 10 million, increased daily active customers by 231%, and the number of paying customers grew by 139%.”

As far as losses go, Revolut is in much the same boat as some of its peers. Digital banking competitor Monzo’s pre-tax losses grew to £115.4 million for 2019. Another rival, Starling, recorded a loss of £53.6m.

Creditably, Revolut doubled its gross profit margin in 2019, as it scaled up its operations and adopted a more diversified revenue structure.

Diversified it is. Where Revolut once was a mere foreign exchange card with an app, it now straddles stock trading, financial savings, and cryptocurrencies.

Its vision is to become a single global platform that serves as a one-stop-shop for all financial needs of the modern consumer.

2020 outlook

Revolut has already raised $ 580 million this year, just before and during the pandemic. Due to the well-timed fundraising, the firm is comfortably capitalized from the regulatory standpoint.

Unfortunately, the virus outbreak at a negative impact on the fintech’s revenue due to lower spending on travel and other heads by customers.

However, as recently as in May, Storonsky said he was confident that Revolut would break even this year.

Related Story:    Revolut is Crypto Brokerage Paxos’ First US Client