London-based Revolut lost millions of dollars in 2019. Revolut is a crypto-friendly trading app and one of the largest fintechs in Europe.
Based on the intelligence from the London-based startup, its losses more than tripled in 2019. It's worth noting that Revolut posted a total loss of more than £ 106 million ($ 139 million). By comparison, the company lost around £ 33 million ($ 43 million) in 2018.
Interestingly, the losses have more than tripled despite sales growth and new customers. In 2019, Revolut increased daily active customers by 231%. In addition, the number of paying customers increased by 139%.
In particular, one of the largest fintechs in Europe also recorded a strong increase in sales. For example, Revolut's sales increased 180% in 2019, from £ 58 million ($ 76 million) in 2018 to nearly £ 162.7 million.
Crypto-friendly trading app and financial results
Interestingly, the London-based company posted a total loss of more than $ 139 million despite sales growth and new customers. The main reasons for the increasing losses were in particular aggressive investment in global expansion and new product offerings.
As a reminder, Revolut announced its ambitious expansion plans in October 2019. The company has partnered with Visa to expand its services in various countries such as Australia, Canada, Japan, Brazil, Russia, New Zealand, the US and Singapore.
In addition, that same year Revolut introduced a royalty-free stock trading feature for clients in the UK and other parts of Europe. The London-based company wanted to compete with brokers like Hargreaves Lansdown and AJ Bell.
In particular, Revolut isn't the only crypto company to suffer losses in 2019. A provider of crypto mining devices listed on the Nasdaq also recorded losses. Canaan reported a net loss of $ 148 million for 2019. Also, a major crypto investment bank, Galaxy Digital, posted a loss of $ 33 million in the fourth quarter of 2019.
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