Digital bank Revolut triples its valuation to $5.5bn
The fintech start-up raises $500m in a new funding round
British fintech start-up Revolut raised $500m (£386m, €460m) in a new funding round led by the US-based venture capital firm TCV that had previously invested in Facebook and Netflix.
According to CNBC, the list of investors also included Ribbit Capital, DST Global, Lakestar and GP Bullhound, who have earlier backed Revolut.
The new valuation for the company was set at $5.5bn (£4.2bn, €5bn), which is three times higher than in 2018 ($1.7bn). The total amount of the funds raised by Revolut rose up to $836m.
The Guardian writes that following the recent funding round Revolut has become the UK's most valuable fintech start-up. Its valuation puts it ahead of its direct competitor, digital bank Monzo, whose valuation in 2019 was £2bn. Moreover, it surpassed small business lender OakNorth that previously held the top spot at £2.2bn.
The London-based start-up Revolut, founded by two Russian-British entrepreneurs in 2015, provides banking services in Britain and Europe and fee-free currency exchange, stock trading and crypto exchange. The company recently revealed that it has more than 10 million customers worldwide.
Revolut has opened 23 offices around the world that employ about 2,000 staff, with 500 of them working from London.
The start-up has not yet made any profit. In 2018, the company reported a £33m pre-tax loss.
In the meantime, Monzo is currently planning to hire 500 more employees and to hit 5.5 million customers in 2020. The company is also planning to relaunch paid accounts.
FURTHER READING: Monzo plans a hiring spree and to relaunch paid-for accounts