- British digital bank company Revolut announced it raised $500 million at a valuation of $5.5 billion
British digital bank company Revolut recently announced it raised $500 million in a funding round — which valued the company at $5.5 billion according to CNBC. This round of funding was led by TCV. Existing investors Ribbit Capital, DST Global, Lakestar, and GP Bullhound also joined the round.
And this valuation means that Revolut’s jumped about three-fold since April 2018 when it was at $1.7 billion. Including this round of funding, Revolut has raised a total of about $836 million.
Revolut launched in 2015 and it started out as a service that allowed users to spend money overseas without having to pay large fees. From there, the company started offering other services like stock and cryptocurrency trading along with savings products.
Revolut now has 10 million users and it saw 150% growth last year. Plus the company also received a European banking license from the Lithuanian central bank in 2018. This enables the company to offer loans.
With this round of funding, Revolut is planning to expand to other locations such as the U.S. Plus it will be used for increasing its offerings in existing markets.
“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,” said Revolut founder and CEO Nik Storonsky.
The company is aiming to become profitable. In 2018, the company’s losses doubled to £32.8 million. With a subscription model for additional services, the company could achieve this. Currently, Revolut generates most of its revenue from the fees charged to merchants when a customer uses the company card.
Fortunately, the company’s daily active users grew 380% in 2019 and revenue grew 354% in 2018. And revenue generated from premium subscription plans increased 154% last year.
