TECHNOLOGY
Fintech Decacorn challenges in a downturn The problems facing scaling fintechs in the current climate are multifold . A major hindrance to continued expansion is a drop in investment . Based on funding reports from 2021 , the capital available to disruptive startups is no longer as abundant as it once was . Fintechs that commanded mega-rounds last year have strategised and set themselves on roads to expansion and profitability that now can ’ t be met as subsequent funding rounds shrink .
“ Scaling a business is hard and there are never-ending problems to solve ”
ANDRÉ SILVA HEAD OF INTERNATIONAL EXPANSION , REVOLUT
IS A DECACORN ? A LOOK AT THE COMPANIES WITH $ 10 BILLION VALUATIONS | FORBES
However , those companies that grew at a moderate pace , expanding at a rate that didn ’ t reflect the skyrocketing bubble , are more likely to fair better as the market contraction increases . The key to surviving such a situation , and even thriving within it , often comes with experience .
“ The challenges Revolut faced in the early days of the company were similar to what all startups go through ,” says Silva . “ Scaling a business is hard and there are never-ending problems to solve . But as our CEO and founder Nikolay Storonsky has said , we ’ ve made almost every mistake possible and we ’ ve learned from them . We ’ re fast learners and it ’ s one of the keys to our success .”
He suggests that just because a company has passed the $ 10bn valuation mark , does not mean that the investment environment gets any easier . “ Revolut has raised $ 1.8bn in funding and we have been able to raise funds effectively at every stage of our evolution . In our last round in July 2021 Revolut raised $ 800mn , valuing the business at $ 33bn .”
118 September 2022