Revolut losses double to €234m as staff costs surge

The digital payments company was valued at $5.5bn in its last private fundraising round.

Digital payments company Revolut — which is seeking banking licences in Ireland, the US, Britain, and continental Europe — saw its operating losses double to £201m (€234m) in 2020 as rapid growth around the globe caused staff costs to surge.

The company is also understood to be in the early stages of a fundraising round that could value it at $20bn (€16.8m) or more. However, it is not planning a stock market listing.

Revolut was valued at $5.5bn (€4.6m) in its last private fundraising round.

Administrative expenses at the fintech company rose to £266m (€310.8m), compared to £125m (€146.1m) in 2019, according to the company’s latest annual report. That was driven by £170m (€198.7m) of staff costs, almost triple the previous wage bill, and higher spending on functions like risk and compliance.

Adjusted revenue, which included a £39m (€45.6m) gain on the group’s cryptocurrency holdings, rose 57% to £261m (€305m), driven by fees on pre-paid cards and a surge in new clients, according to the annual report. 

The company had 14.5m retail customers at the end of last year, up 45%, while commercial customers doubled to more than half a million.

Revenues have also increased by more than 130% in the first quarter of this year, the company said.

Bloomberg and Irish Examiner