Revolut, the Most Valuable Fintech company in the U.K, just raised $800 Million in Funding Now What?

Revolut has the funding to continue its expansion globally and its innovation in the "neobank" space. Is this enough to compete in the global market?

(image credit: finance.yahoo.com)

FinTech funding continues to roll out at a record-breaking pace. Revolut, the London-based financial “super-app” that provides banking, traditional and crypto investing, currency transfer, and other money management services, has raised $800 million in Series E funding. This puts the companies value at $33 billion, and with 16 million users globally and 150 million transactions per month, this number will only increase as the company continues to expand and grow.

This makes Revolut the most valuable fintech out of the U.K., as well as one of the biggest of the privately backed scaled-up startups not just in Europe but the world. It’s following in the footsteps of Klarna, the buy-now-pay-later startup out of Sweden that is also diversifying into a wider range of other services for consumers and the businesses that integrate it. This latest round of investing was co-led by Softbank Vision Fund 2 and Tiger Global. Revolut last raised funding about a year ago, when it closed out a Series D at $580 million. However, since then, their evaluation has grown over 6x from $5.5 billion last year.

“SoftBank and Tiger Global’s investments are an endorsement of our mission to create a global financial super-app that enables customers to manage all their financial needs through a single platform,” said Nikolay Storonsky, Revolut’s founder and CEO, in a statement.

Key Statistics

Revolut reported financial figures for 2020:

• $361 million in revenue (£261 million) in the fiscal year.

  • a 57% increase versus 2019 revenue of $229 million (£166 million).

• Gross profit in the period was $170 million (£123 million) last year.

  • Still operates at a net loss, with Q1 2020 racking up an adjusted operating loss of $76 million (£55 million)

• $277 million (£200.6 million) in operating losses for the whole of the year.

  • In other words, the money being placed down is for the long-term investment as growth continues to skyrocket.

The Focus of Revolt

Like most “neobanks,” Revolut has been built around already built banking and financial services infrastructure, which it uses through APIs and integration. Revolut then focuses on creating a slick and user-friendly experience within its app and customer care.

The focus of Revolut’s technology, then, is to improve personalization and to create new tools, such as budgeting tools and other financial management features.

This type of digital banking service has been particularly embraced by younger users, who are extremely comfortable using digital devices and mobile apps to carry out most of their banking work, leisure, and practical aspects of their lives. These same customers are often less experienced in personal finance and prefer to have an online banking system that helps and guides them with their Finances.

“We believe Revolut’s superior customer experience and focus on rapid product development put the company in a strong position to continue scaling in both existing and new geographies,” said Scott Shleifer, partner, Tiger Global, in a statement. “We are excited to partner with Nik and the Revolut team as they build the next generation of financial services.”

Conclusion:

Revolt has an auspicious future ahead of them. With its lighting fast growth, Revolt has the potential to take its new funding and put it back into the company where it needs it most. Continuing its expansion across the world will be a must if Revolt wants to continue its exponential growth, as well as advancing its innovation and its quality of customer service. Soon Revolt will be competing with some of the biggest FinTech and "NeoBank" companies on a global stage.