Fintech startup and challenger bank Revolut triples its valuation since the last funding.
Mobile-based neobank and a digital provider of financial services, Revolut just raised $500 million in its ‘D’ round led by TCV. Though it is yet to report a profit, Revolut now ranks as one of the most highly valued startups worldwide. A number of existing investors also committed to the fundraising. (Bloomberg)
Revolut’s financial platform boasts of a user base of over 10 million. The London-headquartered fintech employs 2,000 people in 23 offices. In 2019, it grew customers by 169%, and revenues by 354% year-on-year. Its Premium and Metal subscription accounts grew by 154% and now generate significant revenues.
“Going forward, our focus is on rolling-out banking operations in Europe, increasing the number of people who use Revolut as their daily account, and striving towards profitability,” said Nik Storonsky, Founder & CEO at Revolut in a statement. TCV said Revolut has set its sights “on profitability and daily adoption in 2020.”
Use of funds
Revolut’s cumulative funding now stands at $836 million. The firm will use the new funds to enhance its product development. It also plans to strengthen its core retail and business offerings in existing markets. It will also extend high-interest savings accounts beyond the UK. The neobank will also lay particular emphasis on growing its Premium and Metal accounts.
“We’re on a mission to build a global financial platform – a single app where our customers can manage all of their daily finances, and this investment demonstrates investor confidence in our business model,” said Storonsky.
Revolut allows customers to purchase cryptocurrencies on its app and added equity trading and insurance brokerage to its range of services.
The fintech is looking to gain a UK banking license and plans to launch in the US in the first half of 2020.
Technical wizardry
“Using a modern technology stack and with a relentless focus on delighting customers, Revolut has built a truly exceptional customer experience that is exceeding anything that existing banks can offer,” said John Doran, General Partner at TCV.
Revolut’s high-tech competition includes digital banks Monzo, Starling and N26.
The last-named bank recently announced its departure from the UK, citing Brexit. However, John Glen MP, the UK Economic Secretary, and City Minister said Revolut’s funding raise was “a clear indicator of our strength as a place for fintech business as we leave the EU.”
Meanwhile, recent reports suggest JPMorgan Chase (NYSE: JPM) is planning to enter UK banking with Chase-branded savings and loan products.
Related Story: FinTech: JPMorgan Plans Foray Into UK Digital Banking
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