Revolut has acquired India-based money transfer company Arvog Forex as the British fintech giant plans to launch its cross-border products for local users in second half of 2022. Financial terms of the deal were not shared.
The deal, which went through Revolut’s Indian registered entity, is said to reinforce its foundation in India and build on the strengths of its core business around the world. London-based neobank is also open to peruse further acquisitions in the Indian fintech segment as it eyes for obtaining a digital banking license.
Arvog Forex has a wide presence across India, having provided over 15000 people last year with remittances and other forex services through more than 20 branches nationwide.
“Our significant investment plans, this acquisition and the quality of the team we are putting together reflect our intention to rapidly roll out these innovative products and services. India is a key region in our global expansion plan and this acquisition is testament to the rapid strides we want to make here,” said Paroma Chatterjee, chief executive officer of Revolut India in a statement.
The British-born startup plans to heavily invest in India over the next five years as it is confident the move would yield more business. Revolut has committed to create 300 new jobs across multiple functions including HR, finance, growth, marketing, recruitment, compliance, risk and technology.
Revolut plans to enter other Asian countries
The Indian subsidiary, which received $45.5 million from its parent entity, will also serve as an operations hub for Revolut’s global business. After India, the fintech firm plans to enter other Asian markets like Indonesia, Philippines, South Korea and China.
Revolut, which offers banking and trading services through an app, raised $800 million last year in a funding round that valued the firm at $33 billion. This valuation was a sixfold increase compared to nearly $5.5 billion the UK firm was worth in 2020.
Revolut has been among a number of app-only fintech companies that are looking to branch into banking as they diversify their revenue stream and bring new services to their existing customers.
The new business roll-out comes as the market for Fintech firms offering alternatives to traditional banks has become fiercely competitive. Revolut is already going up against other established rivals, such as Stripe, which recently expanded its portfolio of partner banks that have signed on to offer co-branded banking services.