Revolut confirms $ 800 million in new funding at a $ 33 billion valuation to boost its financial services super app.
Revolut-The Super Unicorn from Great Britain
Fintech funding continues to move at a rapid pace as a result of the huge changes in how people around the world spend and manage their money. In the latest development, Revolut – the London-based financial”superapp”, which provides banking, investment, currency transfer and other money management services to some 16 million users worldwide, confirmed that it has raised $ 800 million. The company said that this Series E round of financing values Revolut at $ 33 billion.
This makes Revolut the UK’s most valuable fintech company and to one of the largest privately financed Start-ups and not only in Europe, but worldwide. It follows in the footsteps of Klarna, the start-up from Sweden. Klarna raised $ 639 million last month, worth nearly $ 46 billion. Stripe in the US was taken at the beginning of the year with a valuation of $ 95 billion.
This latest Series E is jointly produced by Softbank Vision Fund 2 and Tiger Global which seem to be the only funders in this round. Revolut last raised money about a year ago, when it closed a Series D with $ 580 million. What is amazing, however, is how much the valuation of the fintech company has changed since then and around the Increased six-fold (last year, Revolut was worth only $ 5.5 billion).
“The investments of SoftBank and Tiger Global confirm our mission to create a global financial superapp that allows customers to manage all their financial needs through a single platform” -Nikolay Storonsky, founder and CEO of Revolut
Revolut’s record sales for the 2020 financial year
Revolut last month released financial figures for 2020 and reported revenue of $ 361 million (£261 million) for the financial year, an increase of 57% compared to revenue of $ 229 million (£166 million) in 2019.
Gross profit in the reporting period last year was $ 170 million (£123 million), although the company still working with a net loss. The first quarter of 2020 saw an adjusted operating loss of $ 76 million (£55 million) and a full year operating loss of $ 277 million (£200.6 million ).
Revolut has more than 16 million customers and records over 150 million transactions per month. It is planned to offer a wider range of services and promotions to increase this base and make its users invest more money and time in the app. This also includes research newer areas such as insurance and a deeper dive into investment and trade, and probably a significant Increase in credit services (which were a big growth engine for other neobanks and financial technology companies). Revolut will also do more to improve its Expand user base in the US and Indiathey said.
Like other” neobanks ” that have emerged in recent years, Revolut is based on the idea of tapping into existing banking and financial services infrastructures, which it uses via APIs and integrates into its platform. Revolut then focuses on creating a smooth and user-friendly experience both within its app and in customer support.
So the focus of Revolut’s technology is to improve personalization and develop new tools that are not as standardized, such as budgeting tools and other financial management features.
“We believe Revolut’s outstanding customer experience and focus on rapid product development puts the company in a strong position to continue scaling in both existing and new regions. We look forward to working with Nik and the Revolut team to build the next generation of financial services.”- Scott Shleifer, Partner of Tiger Global
So far Revolut has mainly younger users who are not only more comfortable with digital devices and mobile apps to handle all the professional, leisure and practical aspects of their lives, but may also be less experienced in financial matters.
It will be interesting to see how and whether Revolut brings more core financial infrastructure to its app, or whether embedded finance holds the upper hand. Applying for a banking licence, as Revolut did in the UK earlier this year, could be a sign of what it wants to build in the future. It has also parted ways with some of its third-party vendors over the years to build its own infrastructure.
Meanwhile, investors believe that the current model provides a lot of space for the development of technologies.
“Revolut’s innovation rate has redefined the role of financial services and [Revolut] at the forefront of the emerging neobanking sector in Europe. The company’s rapidly growing user base reflects continued demand for REVOLUT’s growing range of services. We look forward to supporting Nikolay and the team in continuous product innovation and bringing their services to new markets worldwide – Karol Niewiadomski, Senior Investor at SoftBank Investment Advisers,
Last updated on July 16, 2021
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