Asia a ‘high priority’ for Revolut following mammoth $500m fundraise

Revolut, one of the world’s highest-valued financial technology startups with a valuation of US$5.5 billion, has its eyes on Asia.

Following the US$500 million it raised from a series D funding round in February, the London-based startup recently opened remittance routes to India, Malaysia, Indonesia, and the Philippines. Revolut says it has over 10 million users worldwide and more than 60,000 users in Singapore.

Photo credit: Revolut

“The goal is to build a global financial network and Asian countries are critical nodes of that network,” Eddie Lee, Revolut’s Asia-Pacific regional director of operations, tells Tech in Asia.

The company’s suite of financial solutions include cross-border remittances at mid-market exchange rates, peer-to-peer money transfers, and insurance as well as savings and budgeting tools. It also allows commission-free stock trading in the UK.

While the startup hopes to expand its services on a larger scale worldwide, navigating the varying dynamics and regulations across regions – even within Asia itself – pose a challenge. Revolut’s current product features in Europe, however, can shed light on what Asian users can expect in future.

The company didn’t specify how much it has earmarked for its expansion plans in Asia but said the region is a “very high” priority. At present, it has offices in Singapore, Tokyo, and Melbourne.

Rebranding from a travel card

In Singapore, over 30% of Revolut’s user transactions come from shopping and groceries, followed by spending on restaurant and dining at 24%.

The startup revenue-shares an interchange fee with Visa, which is charged to merchants on every transaction made via the Revolut card or app. It also offers annual subscription plans of S$99 (US$70) for Premium accounts and S$199 (US$140) for Metal accounts, which provide customers with perks such as discounts on airport lounge access, complimentary travel insurance, and unlimited quotas on foreign exchange transactions.

Revenue from its premium subscription plans climbed 154% last year, according to numbers the company released during its latest fundraise.

Revolut’s Metal cards / Photo credit: Revolut

As governments impose sweeping lockdowns and travel restrictions to contain the spread of Covid-19, travel activity worldwide has slumped.

The pandemic has hastened Revolut’s rebrand away from being solely a travel card. “One of the challenges we see is that consumers still view us as a travel product, and we need to change that,” Lee points out.

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