The Revolut unicorn, a disruptive force in banking

July 7, 2019 | FinTech, News

The lessons it learnt en route to unicorn status

Not long ago, Revolut, the UK-based digital “challenger” bank, wanted to become the Amazon of banking. Today, the Revolut unicorn is now worth billions.

Started in July 2015 by two bank ex-employees, Revolut has a set a torrid pace towards its aim to become a global financial player.

Scooping up $336 million in venture capital financing till date, it was valued at $1.7 billion in its last funding round, putting it in the prized “unicorn” club.

Here’s an astounding statistic: Between June 2018 and now, users on Revolut’s banking platform have more than doubled to 5 million.

Revolut – a unicorn’s rocky path

Revolut’s initial brief was to cut out the middlemen and allow fee-free transactions in foreign exchange. This gave it a subscriber base, setting it on a high growth path.

That came with problems.

The online bank was once accused by the media of having a toxic workplace and a high turnover of employees.

Another media report claimed the bank routed illegal transactions when its sanctions screening system was down.

The Financial Conduct Authority,a financial watchdog of the UK, also investigated the claime.

Revolut management has dismissed the charged. However, they admit these incidences were valuable lessons.

Revolut unicorn and profitability

Does Revolut make money? Not yet, but it soon might.

The digital bank’s strategy is to provide the main product free and cross-sell other services around it.

The key to becoming profitable is, therefore, a large enough customer base.

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Artificial Intelligence: AMD Takes On Rivals In The AI Chip Sweepstakes
December 7, 2023     Artificial Intelligence, News

Chipmaker AMD (NASDAQ: AMD) has unveiled a range of innovative AI solutions spanning from data centers to personal computers. The AMD Instinct MI300 Series features data center AI accelerators, while…
Digital Assets: Robinhood Debuts Crypto Trading On Its App In The EU
December 7, 2023     Digital Assets, FinTech, News

Robinhood (NASDAQ: HOOD) has launched its Crypto app in the European Union (EU), allowing eligible customers to engage in crypto trading with the added incentive of earning Bitcoin rewards. Customers…
FinTech: Samsung Electronics Ties With Mastercard’s Wallet Express
December 7, 2023     FinTech, News

Samsung Electronics (KRX: 005930) and Mastercard (NYSE: MA) have partnered to launch the Wallet Express program, offering banks and card issuers a cost-effective way to expand digital wallet offerings. Through…
Venture Capital: Revaia, Europe’s Biggest Female-Led VC Firm, Racks Up $160M For Second Fund
December 7, 2023     ESG and Sustainability, News, Venture Capital

Revaia, Europe’s largest female-founded venture capital firm, has successfully raised €150 million ($160 million) for its second fund, Revaia Growth II. The funding was secured from sovereign wealth funds, family…