Revolut raises $500 million in Series D funding, sets sights on profitability in 2020

Fintech Revolut, has raised an additional $500 million in Series D funding, taking the total amount raised by the company to $836 million.

The new funding round was led by US-based growth capital firm TCV, with a number of existing investors also participating. The latest funding round values the business at $5.5 billion, making Revolut one of the highest valued fintech companies in the world.

The new capital was secured on the back of high customer demand and engagement and a strong financial performance last year. In 2019, Revolut increased customer growth by 169%, the number of daily active customers by 380%, and saw financial revenues in 2018 grow by 354%.

The new capital will be focused on the customer experience and used to strengthen Revolut’s core retail and business offering in existing markets, with a particular focus on product development that will help accelerate daily usage of accounts. Future plans include lending services for retail and business customers, extending high-interest savings accounts beyond the UK, further improving customer service and rolling out banking operations across Europe.

Revolut will also focus on further developing its Premium and Metal subscription accounts, which have proven to be a successful revenue stream for the business, growing by 154% last year. Revolut’s Premium and Metal accounts include a variety of benefits for customers, such as unlimited foreign exchange, airport lounge access, commission-free stock trading and travel insurance.

The company now employs over 2,000 people, and last year made a number of senior appointments across the business in order to scale up its governance including Martin Gilbert, the former Co-Chief Executive of Standard Life Aberdeen, as Chairman of the Board.

We’re on a mission to build a global financial platform – a single app where our customers can manage all of their daily finances, and this investment demonstrates investor confidence in our business model. Going forward, our focus is on rolling-out banking operations in Europe, increasing the number of people who use Revolut as their daily account, and striving towards profitability. TCV has a long history of backing founders who are changing their industries on a global scale, so we are excited to partner with them as we prepare for the next stage of our journey.

Nik Storonsky, Founder & CEO, Revolut

 

Leave a Reply

Your email address will not be published.