- Revolut has raised $500 million in a funding round led by TCV, an early investor in Facebook and Netflix.
- It’s now tied with e-commerce payments start-up Klarna as the most valuable fintech start-up in Europe.
- The firm said it will use the new financing to bolster its offering in existing markets and expand into lending.
CNBC , MON, FEB 24 2020
Fast-growing digital bank Revolut triples valuation to $5.5 billion
British financial technology start-up Revolut has raised $500 million in a fresh round of funding that values it at $5.5 billion.
The investment round was led by Silicon Valley-based venture capital firm TCV — an early investor in companies like Facebook and Netflix — and also attracted backing from existing investors Ribbit Capital, DST Global, Lakestar and GP Bullhound.
It means Revolut’s valuation has seen a threefold increase from when it was last valued by investors at $1.7 billion in April 2018. With an extra $500 million in the bank, the latest round takes Revolut’s total amount raised up to $836 million.
According to data from venture capital analytics firm CB Insights, Revolut is now tied with e-commerce payments start-up Klarna as the most valuable fintech start-up in Europe.
Founded in 2015, Revolut initially gained popularity by letting users spend money abroad without paying steep fees. It’s now one of a wave of new mobile app-based challenger banks which offer banking services without a costly networks of physical branches. Its competitors include British firms Monzo and Starling, as well as German rival N26 which recently said it would leave the U.K. due to Brexit.
Over the years, Revolut has added new features to its app including cryptocurrency and stock trading, and more recently savings products. It now has a customer base of over 10 million users, with customer growth climbing over 150% in 2019. It also secured a European banking license from the Lithuanian central bank in late 2018, which it said would help it offer more services like loans. The firm is also looking to obtain a U.K. banking license.
British financial technology start-up Revolut has raised $500 million in a fresh round of funding that values it at $5.5 billion.
The investment round was led by Silicon Valley-based venture capital firm TCV — an early investor in companies like Facebook and Netflix — and also attracted backing from existing investors Ribbit Capital, DST Global, Lakestar and GP Bullhound.
It means Revolut’s valuation has seen a threefold increase from when it was last valued by investors at $1.7 billion in April 2018. With an extra $500 million in the bank, the latest round takes Revolut’s total amount raised up to $836 million.
According to data from venture capital analytics firm CB Insights, Revolut is now tied with e-commerce payments start-up Klarna as the most valuable fintech start-up in Europe.
Founded in 2015, Revolut initially gained popularity by letting users spend money abroad without paying steep fees. It’s now one of a wave of new mobile app-based challenger banks which offer banking services without a costly networks of physical branches. Its competitors include British firms Monzo and Starling, as well as German rival N26 which recently said it would leave the U.K. due to Brexit.
Over the years, Revolut has added new features to its app including cryptocurrency and stock trading, and more recently savings products. It now has a customer base of over 10 million users, with customer growth climbing over 150% in 2019. It also secured a European banking license from the Lithuanian central bank in late 2018, which it said would help it offer more services like loans. The firm is also looking to obtain a U.K. banking license.
