Revolut, the $45 billion neobanking startup based in the U.K., may have put its initial public offering (IPO) plans on hold for now, but its financial performance in 2024 shows a company firing on all cylinders. The company reported a significant net profit of $1 billion (£790 million) for 2024, a huge leap from the previous year, as its customer base grew by 38%, reaching 52.5 million users.
In its annual report, Revolut also highlighted a remarkable 72% increase in revenues, which surged to $4 billion (£3.1 billion). This demonstrates the company’s robust growth trajectory despite market challenges and ongoing discussions about its IPO prospects. With four consecutive years of profitability, Revolut’s future looks as bright as its balance sheet.
A Landmark Year for Revolut
2024 marked several milestones for Revolut, solidifying its position as a key player in the global fintech space. The company more than doubled its net profit compared to 2023 ($428 million), showing a significant leap in financial health. One of the most notable achievements for Revolut was securing its long-awaited banking license in its home market of the U.K., its largest market. This move is expected to enhance Revolut’s competitiveness in the crowded neobanking space and increase its credibility with customers and regulators alike.
Additionally, Revolut’s valuation climbed to $45 billion, largely driven by a successful secondary share sale. The company also expanded its product offerings by launching its own crypto exchange, Revolut X. Although the company hasn’t disclosed specific revenue figures from Revolut X, it’s clear that the exchange is growing rapidly. This new venture is part of Revolut’s broader strategy to diversify its revenue streams, particularly through its Wealth division, which saw a staggering 298% growth, from $158 million in 2023 to $647 million in 2024.
Wealth and Crypto Driving Growth
Revolut’s Wealth division, which includes not only crypto but also savings products, is now the company’s second-largest revenue segment, just behind its card payments business. The latter saw a healthy 43% growth, bringing in $887 million in 2024. Revolut X, while not breaking out specific numbers, is positioned to play a pivotal role in further driving the Wealth group’s success.
The company’s push into cryptocurrency has generated significant interest. Revolut’s crypto exchange is not limited to its home market; it’s designed to operate across multiple jurisdictions, including Europe and the MiCA crypto region. The complexity of regulatory frameworks in different regions has slowed the rollout of Revolut X, but the company is optimistic about its future prospects.
CEO and co-founder Nik Storonsky described 2024 as a “landmark year” for Revolut. He emphasized the company’s accelerating customer growth, adding nearly 15 million new users globally, and noted that the broader customer engagement had deepened as users adopted a wider range of services across Revolut’s retail and business offerings.
Expansion Plans and IPO Uncertainty
Looking to the future, Revolut has ambitious plans for 2025. The company aims to launch its banking services in both the U.K. and Mexico, leveraging its newly acquired licenses in those countries. Additionally, Revolut has set its sights on doubling its customer base to 100 million, further solidifying its position in the global fintech landscape.
Despite these aggressive growth targets, the company has remained tight-lipped about its IPO plans. Revolut’s spokesperson stated that there are no immediate plans or timelines for an IPO announcement, with the company’s primary focus on executing its growth strategy. While the IPO door may not be completely closed, Revolut is concentrating its efforts on global expansion and product innovation for the time being.
In the meantime, Revolut is facing some challenges, including a lawsuit filed by Rippling, which has raised questions about a mysterious internal report involving the company. This legal battle has yet to be fully resolved, but it remains a point of contention for Revolut as it works to expand globally.
Revolut has had a challenging time breaking into the U.S. market, but the loosening of cryptocurrency regulations in the country could open new doors for the company. The growing appetite for crypto services in the U.S., combined with Revolut’s expanded offerings, could help the company accelerate user growth in the region and further diversify its product portfolio.
With the potential for more financing in the near future, Revolut is also eyeing a possible secondary share sale at a $60 billion valuation, which would provide additional capital to fund its international expansion and product development. The company’s success in expanding its crypto and wealth services could play a pivotal role in this next phase of growth.
