Global neobank Revolut is preparing to enter the Indian market next year, setting its sights on affluent consumers in what is expected to be a major step in its global growth strategy, according to a report by the Financial Times.
Recently, Abu Dhabi’s sovereign wealth fund, Mubadala, invested in Revolut, as part of a transaction that valued the company at $45 billion.
The London-based fintech initially set up operations in India in 2021, but only recently received provisional approval from the Reserve Bank of India to issue prepaid cards and digital wallets.
Since then, Revolut has been testing these services internally with its more than 4,000 employees in the country.
The company is now preparing to launch its app, along with domestic and multi-currency cards, by 2025.
Paroma Chatterjee, the CEO of Revolut India, highlighted that the platform is almost ready for launch, with only minor technical issues to resolve.
She reiterated that India represents a key market in Revolut’s broader international strategy.
India’s burgeoning fintech sector, supported by government initiatives like the India Stack, has created opportunities for companies like Revolut.
However, the challenge of profitability remains due to India’s relatively low per capita income.
As a result, Revolut’s strategy is to focus on the top 10-15% of India’s 1.4 billion people—a group Chatterjee refers to as “global India,” which comprises individuals who are frequent consumers of international services and products.
Chatterjee, who has been with Revolut for three years, has prioritised obtaining regulatory clearances and ensuring compliance with India’s data localisation rules.
The company plans to submit an audit report to the Reserve Bank of India next month, aiming to secure final approval.
Once fully authorised, Revolut will focus on profitability rather than rapid growth, a shift from the traditional growth-at-all-costs approach.
Revolut, which holds an EU banking license and recently secured a UK banking license, is keen to reduce its reliance on Europe, where over 90% of its 2023 revenue was generated.
The fintech is looking to diversify its revenue streams by expanding into markets like India, the United States, and the Middle East, where it has also applied for e-money and remittance licenses in the United Arab Emirates.
Revolut, which reported a pre-tax profit of £438 million in 2023, is preparing to face stiff competition in the highly dynamic Indian fintech market.
