Revolut seeks $1.5bn funding to super-charge global expansion
Leading UK FinTech, Revolut, is seeking a massive $1.5bn in additional funding as it aims to establish itself as a dominant global brand in banking and payments. Sky News revealed that the Revolut has enlisted JP Morgan to help it raise $500m via an equity-based transaction and a further $1bn via a convertible loan against the company.
The value of some of the most successful FinTech startups has spiralled in recent years with a number achieving “Unicorn” status with a valuation in excess of $1bn. However, the level of funding that Revolut is seeking is virtually unheard of amongst such relatively young financial services startups/scaleups.
Storonsky is apparently hoping that the latest cash injection will see his company valued at between $5bn and $10bn, which would make Revolut as the most valuable fintech start-up in Europe, overtaking small business lender OakNorth, which is valued at about $2.8bn. Revolut is expanding aggressively, having struck a deal last month with Visa to issue cards across 24 countries, including Australia, Brazil, and Canada.
Storonsky clearly sees quickly building scale as the key to Revolut’s future prosperity, as the company pursues its programme of entering multiple new markets. Whilst the ambitions of its founder have so far seen revenues increase to £58m, pre-tax losses have more than doubled to £33m.
Founded in 2015 by CEO, Nik Storonksy, Revolut provides a range of banking services, including payment cards, currency exchange, and P2P payments. The company also supports retail purchases and cash withdrawals in 120 currencies, via its mobile app.
Revolut now has 7 million customers across Europe, about half of whom are in the UK, and claims to be opening 12,000 new accounts every day.