Revolut Ltd. the London based FinTech company announced that it has raised $500 million in a funding round led by U.S. venture capital firm TCV. This latest funding round values the firm at a sizeable $5.5 billion, taking it well into the top ranks of Europe’s most valuable startups.
Proceeds from the capital raising will go towards more product development and expansion of their banking operations in Europe. Loans to retail and business customers are in the works too, which we look forward to testing. The company also plans to make improvements in customer service too.
“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,” Chief Executive Officer Nik Storonsky said in a statement regarding the capital raising.
The digital banking market is hyper competitive with a number of established players like N26, Monzo, Starling Bank, Monese and we’ll add TransferWise to the mix as they too offer similar banking services to Revolut with their borderless accounts.
In Revolut’s last publicly released finances, they reported revenue of 58.2 million pounds ($63 million) in 2018, suffice to say it isn’t profit making as yet. Daily active customer numbers are on the rise rapidly however, growing by 380% year over year.
Revolut bolstered its executive ranks in 2019 by employing former Metro Bank Plc finance director Dave MacLean as chief financial officer and landing Standard Life Aberdeen executive Martin Gilbert as chairman.
We look forward to seeing exactly what 2020 brings for Revolut!
If you haven’t already got yourself an account with Revolut, you can do so here and if you aren’t yet convinced please read our Revolut Review here.