Revolut meets the moment of truth when the fintech bubble threatens to burst
For a company that likes to reward success, Revolut’s daily work culture is fast-paced and demanding, typical of many ambitious startups. A neon sign at Canary Wharf headquarters reads “Get S – t Done”.
The management has previously been criticized for promoting a “toxic” culture, and Stronosky admitted in 2019 that it “has not always got things right”.
Some observers say that the former Russian swimmer shows signs of maturity as a leader. In an effort to keep staff on the side of the demand for talent in the technology industry, Revolut employees can now work anywhere in the world for 60 days a year.
The investor says: “Revolution is [Storonsky’s] life, and it is clear that he dedicates everything to building the business …[He] has undoubtedly matured into the role in recent years. “
As part of that growth plan, Revolut is preparing for a stock exchange listing, which London is keen to host. To professionalize the company’s image, Storonsky has brought in City veteran Martin Gilbert, the former longtime head of Aberdeen Asset Management, as chairman.
Michael Sherwood, a former co-CEO of Goldman Sachs International, also sits on the board.
The company is currently hiring an investor relations team and has completed a reorganization, and has added a new unit Revolut Group Holdings Ltd over Revolut Ltd in its company structure with a new memorandum and articles of association, both of which tend to be a prelude to an IPO.
Although the flow was expected this year, it will now probably be postponed back to 2023 at the earliest after the agreement in the city dried up after Russia’s invasion of Ukraine.
The war is a delicate theme for Revolut given the two founders’ ties to both countries. Storonsky was born in Moscow to a Russian mother and a Ukrainian father, while Yatsenko is Ukrainian. Both men have dual British citizenship and have strongly condemned the invasion, calling it “completely heinous” and suspending Revolut’s operations in Russia and Belarus.
Meanwhile, Storonsky’s father, Nikolay Mironovich Storonsky, director of Gazprom Promgaz, is the engineering arm of the government – sanctioned Russian gas giant. There are no indications that he has any involvement in the company.
The story of the Storonsky family was investigated in Lithuania in 2019 after Revolut won a banking license there, with a politician accusing it of having ties to the Kremlin. These assessments concluded that there were no Russian political connections at the company.
Now the SoftBank-backed startup will have to contend with its first real global downturn.
A spokesman for Revolut said: “The downturn in the fintech industry has not affected us as much as others. We are still hiring and expanding. We currently have over 200 live roles, and after our fundraiser in the summer of 2021, we are well funded and have no need for new capital. “
However, its attempts to defy economic gravity are unlikely to be simple.
The analyst says: “The problem with super apps is that they are beautiful and soft and give us a fantastic interface on our iPhones. But even though it is very easy to win customers, it is very difficult to make money on them. It will be [Revolut’s] a real challenge. ”
