Revolut has finally released its annual report for 2021, which was delayed for some time. According to the report, Revolut has achieved a remarkable milestone by recording its first-ever annual profit in 2021, thanks to the increase in the number of users and cryptocurrency trading. The London-based fintech firm has earned a net profit of £26.3 million, a sharp increase compared to the previous year’s loss of £223.6 million. The revenue has almost doubled from £219.9 million in 2020 to £636.2 million in 2021. However, no information has been released yet for 2022.
Revolut attributes its financial performance to the growth in weekly active users, average spending, and paid subscriptions. Despite the COVID-19 pandemic, global lockdowns, and travel restrictions, the company managed to achieve profitability in 2021, which demonstrates the shift towards digital services and remote working. Revolut’s foreign exchange and wealth division, which includes its crypto trading unit, contributed more than 50% of the company’s total revenues for 2021. The division has generated £348.7 million in revenue, which is a 760.2% increase from the previous year. However, the downturn in the crypto market in 2022 indicates that Revolut might not see similar levels of trading this year.
In 2021, Revolut also secured an $800 million Series E funding round led by SoftBank’s Vision Fund 2 and Tiger Global. This funding round gave the company a valuation of $33 billion, which is six times larger than its previous valuation of $5.5 billion in 2020. The Series E funding round occurred during the peak of global venture investments in the fintech space, which have since fallen. In 2021, capital raised reached a record $121.4 billion but dropped 30.5% to $84.4 billion in 2022. So far, $6.6 billion has been invested in 2023.
Despite not raising funds for over 18 months, there are no indications that Revolut will require additional funding in the near future. The company is expected to release its 2022 figures later this year, but its update suggests that revenues grew around 30% to more than £850 million, which is a smaller increase than the 189.3% growth seen between 2020 and 2021. Revolut has not commented on its profitability in 2022.
Revolut’s annual report follows Klarna’s 2022 report, where the European fintech company posted its largest annual loss ever, but the report revealed a decline in losses towards the end of the year.