FinTech: Revolut’s Storonsky Says IPO Possible Only After Multi-Billion $ Revenues
Revolut CEO Nik Storonsky was speaking on a Bloomberg TV interview.
Revolut, the UK-based digital challenger bank, and the U.K.’s most valuable start-up, is led by co-founder and CEO Nik Storonsky. Now among the best funded fintechs in Europe, speculation has always swirled about its plans for an IPO. Speaking on Bloomberg television on Wednesday, Storonsky said that a potential market listing was inevitable at a certain point of time given that Revolut was a venture-funded company. He also clarified that the company would need to boost its revenues by billions of dollars before that could happen. (Bloomberg)
“To be able to IPO successfully we need to be at least in the few billion dollars range of revenue a year,” Storonsky said.
For the year ended December 31, 2020, Revolut reported adjusted revenue of £ 261 million up 57% over 2019. Customer balances surged 57% to £ 4.6 billion. The company launched 24 new retail and business products, expanded into the US, Japan and Australia and launched banking services in Lithuania.
Chief Financial Officer, Mikko Salovaara, said revenue in the first quarter of 2021 jumped 130% over the same quarter last year, while the number of personal customers at quarter-end totalled 15.5 million.
Meanwhile, Revolut has been progressing determinedly on its objective to become a financial and global super app.
In July it launched “Stays,” a travel booking feature allowing users to book hotel accommodation across Europe. In another innovation the same month, it launched “Restaurant Rewards,” a cashback feature that rewards users for dining at restaurants across the UK.
Revolut already offers financial products such as bank accounts, international money transfers, crypto currency and stock trading, and bill payments along with budgeting tools.
Storonsky said on the interview that financial services providers would have to offer a wide range of services to be competitive in the current scenario.
“In the future we’ll see more and more companies entering into a business model where they sell a lot of products rather than a single-line product,” he added.
The company raised $ 800 million from investors in July at a valuation of $ 33 billion.
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