Fintech Sector: Winners and Losers Revealed for April
Revolut Aggressively Pursues Global Expansion Amid Fintech IPO Pauses
In the world of fintech, Revolut, the UK-based neobank, is making strides in its global expansion, despite a pause in Initial Public Offerings (IPOs) for many fintech companies due to market conditions. As of April to July 2025, Revolut is aggressively pursuing growth in the US, China, Middle East, and North Africa markets.
Key recent developments include a significant fundraising round. In July 2025, Revolut raised $2 billion at a valuation of $75 billion, up from about $45 billion a year ago. This capital will fund product development, regulatory engagement, and customer acquisition, supporting its global growth strategy.
The company's financial performance is impressive. In 2024, Revolut reported a 72% revenue boost to $4 billion and achieved $1 billion in annual profit for the first time. Its customer base grew by nearly 15 million that year to 52.5 million, with CEO Nik Storonsky targeting 100 million daily users in 100 countries.
Revolut is expanding beyond Europe. It has acquired Argentina’s Cetelem bank and is seeking a US banking license, with plans reportedly underway to buy a US bank to accelerate that process. The neobank also aims to grow in China, the Middle East (including Morocco and UAE), and Africa, while navigating regulatory challenges in the UK.
Despite a €3.5 million fine by the Lithuanian financial supervisor for shortcomings in anti-money laundering prevention, Revolut is pushing forward. With UK banking license restrictions still in place, the company is leveraging licenses in Lithuania and Mexico. Resumption of crypto services in Hungary and plans for broader digital asset services depend on securing appropriate licenses, especially in the US.
Revolut's IPO plans are on hold, but executives emphasize that the company is well-capitalized to prepare properly for an IPO, with the US market viewed as a strategic IPO venue given its size and growth potential.
Meanwhile, other fintech companies like Klarna, Chime, and eTro, which had planned IPOs in 2025, have put their stock market dreams on hold due to the market conditions. The IPOs were seen as a thermometer for the fintech industry's health, and Klarna's successful IPO could have strengthened confidence in fintech business models.
However, the markets' downturn has made a successful IPO for fintechs seem unlikely for now. This is more than double the pre-tax profit of the previous year for Revolut, but despite its impressive annual report, Revolut's successes, including its global growth, seem to have been quickly forgotten amidst stories about fines from European financial supervisors and disastrous annual results.
As Revolut enters a crucial phase, freelance journalist Lukas Homrich will continue to cover its economic and financial developments. The neobank is now at a crossroads, according to a study by consulting firm Strategy&, with neobanks like Revolut facing a choice between global growth or "rightsizing".
[1] Revolut Raises $2 Billion at a $75 Billion Valuation (TechCrunch, 2025) [2] Revolut Hits $1 Billion Profit for the First Time (CNBC, 2025) [3] Revolut Plans to Buy a US Bank to Accelerate Its Expansion (Bloomberg, 2025) [4] Revolut Aims to Grow in China, Middle East, and Africa (Reuters, 2025) [5] Revolut's US Expansion Plans Face Regulatory Challenges (Financial Times, 2025)
Revolut's $2 billion fundraise at a $75 billion valuation (TechCrunch, 2025) is a considerable investment for its business expansion, particularly in the US, China, Middle East, and North Africa markets. The raised capital will be utilized for product development, regulatory engagement, and customer acquisition, playing a significant role in Revolut's global growth strategy.
The company's financial performance indicates a growing focus on investing in and expanding its business, as seen by its impressive revenue boost of 72% to $4 billion in 2024 and achieving $1 billion in annual profit for the first time. This strategic business move underscores its commitment to broadening its reach in the banking and finance sector.
