Losses mount at Revolut despite surging crypto market

Losses at London-based fintech firm Revolut increased significantly in 2020, despite growth in revenue and user numbers.

Revolut’s annual report highlights a total comprehensive loss for the 12-month period ending December 12, 2020, of £168 million — up from £107 million the previous year.

The startup’s adjusted revenue grew 57% to £261 million in 2020. That number includes the gains related to crypto holdings which came about as the result of a change in accounting methods, without which the firm would have posted £222 million in revenue for the year.

Of that £222 million, £41 million can be attributed to foreign exchange and wealth activities, which is comprised of revenues derived from foreign exchange, stock trading and crypto trading.

A person close to the company suggested crypto trading specifically accounted for less than 15% of Revolut’s overall revenues. 

Revolut, which has long eyed profitability, said in a press release that it achieved “adjusted operating profit” in the last two months of 2020.

In the first quarter of 2021, its revenues increased more than 130%. The app now has more than 15.5 million customers.

Launched in 2015 as a foreign exchange app, Revolut today offers a range of banking services alongside products like stock and crypto trading. The business recently ramped up its crypto business activities significantly by allowing certain users to withdraw tokens from the app for the first time.