Fintech Firm Revolut’s Revenues Skyrockets Fueled by Cryptocurrency Integration
Blockchain technology and cryptocurrencies are indeed revolutionizing the world and have already endowed many fortunes. UK-based digital banking alternative, Revolut, is one such startup reaping the dividends of cryptos as it’s now valued at a whopping $1.7 billion thanks to its digital currency integration.
A Forward-Thinking Crypto Maneuver
Just a few months after the addition of bitcoin and the alternative cryptocurrencies (altcoins) into its business, the valuation of the company has surged to a massive $1.7 billion from just a little over 400 million last year. Also, the firm’s customer base has seen a substantial increase to 1.7 million clients.
In June 2017, reports emerged that the nascent fintech company was on the verge of sealing a ~$70 million funding round with VC firms such as London VC Index Ventures and Ribbit Capital leading the rounds.
“We are on track to break-even by November as we continue to optimize our costs and infrastructure, and add further lines of revenue to the product,” Revolut CEO Nikolay Storonsky said.
Notably, the company also raised $250 million from various firms, including DST Global, a VC company owned by Russian big whale, Yuri Milner. This addition has taken Revolut’s raised funds to a total of $340 million.
Growth is Key
Per Quartz, the company claims to have broken even since December 2017. However, Storonsky has reiterated that his firm’s primary focus, for now, is on growth rather than profitability.
Amidst this backdrop, the extra funds will be used for expansion to other regions including Canada, Singapore, Hong Kong, Australia and the United States. Revolut will also increase its workforce to 800 employees in the coming months, with a significant focus on engineers and designers.
Revolut’s major competitor, TransferWise, has dominated the European fintech space for quite some time now, with a valuation of $1.6 billion.
Similar to Revolut, TransferWise allows clients send bank payments with meager fees and a superfast confirmation time. However, Revolut has now successfully surpassed the valuation of the firm by $100 million, thanks to the integration of blockchain-based virtual currencies.
More Institutional Investors Catching the Bitcoin Fever
On January 29, 2018, BTCManager reported that Nasdaq had announced its intentions of launching own Bitcoin futures trading, but in a much more unique style compared to that of the CBOE and CME.
The CEO of Nasdaq, Adena Friedman said that Nasdaq “would consider becoming a cryptocurrency exchange over time.”
“I believe that digital currencies will continue to persist it’s just a matter of how long it will take for that space to mature. Once you look at it and say, ‘do we want to provide a regulated market for this?’ certainly Nasdaq would consider it,” she told CNBC on April 25, 2018.
The cryptosphere is maturing with each passing day. With favorable regulation, it won’t be surprising to see quite a vast array of institutional investors and businesses integrate cryptocurrencies into their operations very soon.