Revolut is reportedly preparing for a 2025 launch in India.
Potentially targeting millions of India’s consumers in a vital test for the growth strategy of Europe’s most valuable Fintech, Revolut will aim to take advantage of establishing operations in one of the world’s fastest-growing economies.
London-headquartered Revolut established offices in India back in 2021 but did not obtain in-principle approval from the nation’s reserve bank to provide prepaid cards as well as digital wallets until earlier in this current year.
The Fintech company has reportedly been testing those financial products in-house among its over 4,000 local staff members and is now on track to launch its Fintech app, local, as well as multi-currency cards across India.
Paroma Chatterjee, the Chief Executive of the bank’s Indian arm, revealedx in statements shared with the Financial Times:
“We’re actually very, very close, we’re literally down to single-digit bugs right now in the system. India is being treated as a critical expansion market.”
But the real challenge for many Indian Fintechs is “unit economics”, Chatterjee explained, given the nation’s relatively low GDP per capita estimated by the International Monetary Fund (IMF) at $2,730 (which is still considerably greater than nearby countries like Pakistan).
The more realistic scale of the market for Revolut was “pretty much” the top 10-15% of India’s 1.4 billon population, which is still quite “sizeable,” she claimed.
Chatterjee added:
“That’s the segment that also consumes Netflix, that consumes your Apple products . . . that travels and travels internationally as well, what I term the global India. They have friends and family overseas, they’ve probably studied overseas, worked overseas….”
Revolut is now set to provide an audit report to the Reserve Bank of India this coming month with the goal of obtaining complete authorization following the initial/tentative approval.
Following this step, Chatterjee stated that Revolut’s overall business strategy for India was not simply blindly being “scale focused.”
They also intend to be “very profitability focused”.
Notably, this development has come after Mubadala invested in Revolut, valuing the Fintech at $45 billion.
