Revolut has soared to the top of Britain’s fintech charts after a new nine-figure deal valued the firm at nearly $33 billion (£24bn).
Revolut raised nearly $800m (£578m) in a fresh funding round led by major tech investors SoftBank Vision Fund and Tiger Global Management, making the London-based firm one of the most valuable fintechs ever launched in Europe.
The new valuation now puts six-year-old Revolut above NatWest, one of the largest of the four major UK banks, according to some sources.
Commenting on the cash injection, Chief Financial Officer Mikko Salovaara told reporters that Revolut will likely use the fresh investment to work on new products and services and marketing towards expansion into new markets.
The company has already expanded across several countries in recent years, pushing into markets including the US, Australia and Japan. Salovaara says he wants to look at more US expansion, with eyes on a future in India.
Revolut suffered a major setback in 2020, disclosing losses of around £200m, despite there being increasing demand for fintech services, and cashing in on the crypto trading boom, which increased the firm’s revenues by 34%.
Despite the financial setback, this new deal means the digital bank will now be worth six times more than it was in 2020 – and far more than recent predictions.
Nikolay Storonsky, Founder & CEO of Revolut, said: “SoftBank and Tiger Global’s investments are an endorsement of our mission to create a global financial superapp that enables customers to manage all their financial needs through a single platform.
“This funding round makes Revolut the UK’s most valuable fintech, demonstrating investors’ confidence that we can deliver products that raise the bar for customers’ expectations across the whole financial services industry.”
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Karol Niewiadomski, the senior investor for SoftBank Investment Advisers, commented: “Revolut’s rate of innovation has redefined the role of financial services, placing [Revolut] at the forefront of Europe’s nascent neo banking sector.
“The company’s rapidly growing user base reflects a sustained demand for Revolut’s expanding suite of services. We look forward to supporting Nikolay and the team in continued product innovation and bringing their services to new markets globally.”
Scott Shleifer, partner, Tiger Global added: “We believe Revolut’s superior customer experience and focus on rapid product development put the company in a strong position to continue scaling in both existing and new geographies. We are excited to partner with Nik and the Revolut team as they build the next generation of financial services.”
In April, Sky News reported Revolut’s aspiration for a $10bn-$15bn valuation, while Bloomberg News reported last month that a deal could see the firm valued at more than $20bn.
Additionally, recent fundraising saw the firm valued at $45.6bn which may have been a factor in Revolut’s ability to “target a far higher valuation,” according to Sky News.
Storonsky continued: “We want our global superapp to offer our customers 10x better value and 10x better service and security than they can achieve anywhere else. 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 personalised, 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.”