Digital Bank, Revolut Triples its Valuation to $5.5 Billion
- Posted on February 25, 2020
- Stock Market
- By Lucia
Following a fresh round of funding, British fintech
start-up has been able to raise $500 million, which now brings the valuation
of the company to $5.5 billion.
TCV, a Silicon Valley-based venture capital firm
led the investment round. TCV was an early investor of Facebook, Netflix and a
host of others.
The last valuation of Revolut stood at $1.7 billion
in April 2018. With its current valuation at $5.5 billion, it follows that
Revolut’s valuation has tripled from its last valuation. Currently, the digital
bank has gotten an extra $500 million in the bank and with the latest round of
funding the total amount raised sums up to $836 million.
CB Insights, an analytics firm has disclosed that
Revolut now has ties with e-commerce payments start-up Klarna making it the
most valuable fintech start-up in Europe.
Revolut was founded in 2015 and became popular
after it allowed users to spend money abroad without making transaction fees. It
currently offers unique banking services without the presence of physical
branches. The firm has over 10 million users and last year alone, its customer
base increased by over 150%. The digital bank has grown to have competitors
that include Monzo (a British firm), Starling (a British firm) and N26 (a
German firm that’s leaving the U.K. soon, due to the Brexit). The digital bank has
been licensed since 2008 by the Lithuanian central bank in Europe. It also looks
forward to securing a British banking license.
Asides the normal features of digital banking
applications the Revolut App has other features like cryptocurrency and stock
trading and other savings product.
Revolut has the aim to
penetrate the American market. This has quite been difficult, however, this
might be facilitated with this current valuation. Its current aim is to boost
entry in existing markets and launch loan services to both business and retail
customers.
A statement by its founder
and chief executive officer, Nik Storonsky described the digital bank as being
on its way to becoming a global financial platform. He said, “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.” He further said the firm was
working towards generating more profit and also hopes to focus on subscription-based
accounts. This means that users will pay a monthly fee and will also be charged
when they use Revolut cards to process transactions.
Among top management executives
and senior hires, the digital bank start-up currently has over 2000 employees
worldwide.
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