The latest Revolut funding was backed by Japanese investor SoftBank’s Vision 2 and British conglomerate Tiger Global.
Bloomberg reported last month that the company’s Chief Executive Officer, Nikolay Storonsky, had said in an interview that Revolut was looking for more funds but declined to discuss further on the matter.
Revolut, which provides alternative banking and crypto trading services, was valued at $5.5 billion last year. With the new funding, the bank is now valued at about $33 billion amounting to a 600% increase in the company’s worth. For a company that lost $231.9 million in 2020, Revolut’s new valuation is over 100 times its 2020 revenue.
What this means is that Revolut has leapfrogged Checkout.com’s $15 billion valuation to become UK’s biggest Fintech startup. According to data from CB Insights, it also makes the UK company the second-largest financial technology unicorn in Europe, after Klarna.
How the Revolut Funding Round Went
The latest funding was backed by Japanese investor SoftBank’s Vision 2 and British conglomerate Tiger Global. Together both firms will hold less than 5% share in the company. SoftBank has been actively involved in investing in the cryptocurrency, energy and financial sector.
The money thus raised will be deployed into additional marketing efforts, development of new products and further expansion in the international scene. Chief Financial Officer of the firm, Mikko Salovaara affirms that the company is focused on scaling its growth in India and the United States. He further stated that while the firm had no plans for an IPO in 2021, he wasn’t ruling one out.
Funding Fury for Fintechs
It’s not just Revolut that has gotten funding recently. Many other Fintech start-ups have seen funding from angel investors and venture capitalists. Just last month, Klarna Bank AB raised money from investors leading to a valuation of $45.6 billion valuation.
CB Insights reports that Fintech startups raised about $34 billion in the second quarter of 2021 alone. Trade Republic (Germany) and Mollie (Netherland) have also raised millions of dollars from investors.
Revolut, established in 2015, can boast of up to 15 million personal and 500,000 business customers for its products including bank accounts, international money transfers, cryptocurrency, stock trading and payment of bills.
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