Venture Capital: Revolut Valued At $33B In $800M Funding Round
Revolut is now the UK’s most valuable tech startup of all time.
Revolut, the UK-based challenger bank and fintech, raised $800 million in a funding round led by SoftBank’s Vision Fund 2 and Tiger Global Management, both new investors. The funding came in at a valuation of $33 billion, about six times Revolut’s valuation in a previous round in 2020. (FT)
Investors pile into UK fintech
The size of the round and the sharp surge in Revolut’s valuation in a relatively short time reflect the strong appetite for investment opportunities in fast-growing, tech startups that have disruptive potential.
A report by trade body Innovate Finance said this week that the UK fintech sector raised more in just the first six months of 2021 than the whole of 2020. Enthusiastic investors pumped $5.7 billion into the sector in H1, 34% higher than the total amount of $4.3 billion received in all of 2020, and more than pre-pandemic levels.
Last week, shares of Wise, another UK fintech, debuted on the London Stock Exchange at a market cap of £8 billion ($11 billion). That figure was more than twice that of the valuation of £3.6 billion ($5 billion) struck in a secondary share sale completed by Wise in July 2020.
Speaking of disruption, Revolut’s valuation is now nearly the same as that of NatWest Group (LON: NWG), one of the UK’s four biggest banks. The challenger bank said it will use the new money to continue to build the first global financial super-app.
“We want our global super app to offer our customers 10x better value and 10x better service and security than they can achieve anywhere else,” said Nikolay Storonsky, Founder & CEO of Revolut, in a statement. “We are building a full financial product suite in a single app, where you will always find the product that best meets your needs. Our services will be increasingly personalized, responding to our customers’ daily needs, always with low and transparent fees. As we expand into new markets we are encouraged by our customers’ enthusiasm for Revolut and we look forward to using this investment to further our mission.”
The funding will also support the expansion of Revolut’s offerings to US customers and its entry to India and other international markets.
Message from the UK Chancellor
“It’s great news that Revolut has raised a further $800m and plans to expand even further – creating more jobs here in the UK,” said the Rt Hon Rishi Sunak MP, UK Chancellor of the Exchequer. “We want to see even more great British Fintech success stories like Revolut, which is why I’ve published a roadmap setting out how we will ensure the UK sector remains competitive, forward-looking, and dynamic.”
Related Story: UK Fintechs Pull Out All The Stops In Fundraising In H1 2021
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