Revolut's Ambitious Plans Face Setbacks

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Meanwhile in FinTech, Revolut, a global neobank giant with over 35 million customers and robust backing from prestigious investors like Tiger Global and SoftBank, has faced a series of challenges in India since its highly anticipated debut in 2021.

Initially poised to disrupt the dominant trio of Paytm, Walmart's PhonePe, and Google Pay in India's digital payments sector, Revolut's journey has been less than smooth.

The company's ambitious plan to introduce an international app, starting with remittances and expanding to trading, investment, and credit services, was spearheaded by industry veteran Paroma Chatterjee.

However, three years into its venture, Revolut, Europe's largest neobank, has struggled to make a significant impact in the Indian market. Despite an initial investment of $45 million (approximately Rs 320 crore), the firm's application for digital payments licenses remains in limbo.

Revolut's current focus is the launch of a travel card, similar to offerings by Scapia, Niyo Global, and some major banks, a stark contrast to its grand plans in 2021. The company had announced a multi-million-pound investment in India, promising to create around 300 new jobs. Operating through two entities, Revolut Payments and Revolut Technologies, the latter serves as a global business hub, employing about 2,000 workers.

Despite the challenges, Revolut acquired Mumbai-based Arvog Forex in February 2022, gaining an authorized dealer license to offer forex services in India. However, the company still lacks crucial licenses for wallet, payment, or UPI services and has yet to confirm the timeline for its travel card launch.

Leadership changes have also marked Revolut's journey in India, with key executives resigning and new appointments being made, including former Jio executive Abhishek Padhy and former Flipkart executive Sandeep Nainwal. Internationally, the company faces numerous challenges, including regulatory issues in the EU, a legal battle with Allianz, and efforts to secure a banking license in the UK.

Despite launching financial services in new markets like New Zealand and Brazil, Revolut's global expansion plans have led to a loss of $32 million in 2022, a stark contrast to its pre-tax profit of $50 million in the previous year.

This series of events has put Revolut's ambitious plans for India on hold, as the company navigates a complex landscape of regulatory challenges and internal restructuring.

To be continued...

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