Neobanks
Enterprise

2

Revolut
Power Score: 59.14 Momentum Score: 63.53 (3) HQ: London, U.K. CEO: Nikolay Storonsky

Economics

Valuation: $33 billion (+537% vs. last round, 2020)

Amt. Raised: $1.85 billion

Politics

Lobbying Spend: No

Industry Orgs: FINRA

People

Headcount: 3,041 (+37% YoY)

Engineering Headcount: 565 (+14% YoY)

Big Tech Experience: 2.9%

Open Roles: 1,168

Innovation

R&D Spending: n/a

Patents Applied For: 0

Patents Owned: 0

Acquisitions: Nobly POS (November 2021)

Leadership

Exec Team Exits: No

Diversity Data?: No

ESG/CSR Data?: Yes

On Power

Revolut is the U.K.’s most valuable private tech company, having raised $800 million at a $33 billion valuation in July 2021. The company was valued at just $5.5 billion when it raised $500 million in early 2020. Revolut has 16 million customers, which puts it ahead of several of the other most valuable neobanks, including Chime and N26. One reason for Revolut’s edge is its diversity of product offerings: It’s a neobank, but it also offers cryptocurrency trading, stock trading, international money transfers and consumer-to-consumer payments. This carries through to its consumer messaging, which emphasizes Revolut’s range of products (“One app, all things money”) rather than specific banking services.

On Disruption

After its most recent funding round, Revolut CFO Mikko Salovaara said the company would use the funds for marketing in the U.S. and India. Revolut will hope for success where others have failed. In particular, N26 tried to make the jump from Europe to the U.S. and had to scale back its ambitions. Here Revolut benefits from having more regulatory stability in its home market of the U.K. By contrast, N26 tried to expand while it faced intense scrutiny in Germany, forcing it to narrow its focus back to its home market.

Tea Leaves

Is a rebrand needed for Revolut to succeed in the U.S.? As it looks to expand stateside, its biggest competitor might not even be a neobank but Robinhood, which has likewise positioned itself as an all-in-one financial app with a heavy focus on crypto and stock trading. And figuring out how to take on Robinhood could be important for Revolut regardless: Robinhood originally intended to expand to the U.K. in 2020 but put its plans on hold. In April 2021, Robinhood updated a statement saying “we look forward to the day when we can bring this mission to the U.K.”

They Said It

"We think eventually we will be a public company but have no immediate plans to list.” — Revolut CFO Mikko Salovaara in a July 2021 interview

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https://roar-assets-auto.rbl.ms/documents/12904/PowerIndex_PowerSheets_FT_Neobanks-Revolut_2021-1207.pdf
Neobanks
power-index/fintech/neobanks/