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Revolut raised over $500 million in a funding round and saw its valuation achieve $5.5 billion. The company was also named as one of the most valuable fintech start-ups in Europe together with Klarna.
British digital bank Revolut has tripled in valuation from the previous $1.7 billion to the current one $5.5 billion. This came after the company was involved in a fresh round of funding led by TCV, a silicon valley based company, where it raised $500 million.
The fundraising was also backed by Rabbit Capital, Lakestar, DST Global, and also GP Bullhound. According to the data from a venture capital analytics firm CB Insights, the digital bank is now ranked as the most valuable fintech start-up company in Europe together with e-commerce payment start-up Klarna.
The digital bank which was founded back in 2015, has gained its huge popularity by allowing its customers to spend money abroad without having to pay more fees. Revolut is now one of the mobile app-based challenger banks which offer banking services without charging extra fees on physical branches.
What Revolut Is Doing to Maintain Its High Valuation
Since its conception, Revolut has been adding new features to its mobile-based app. Some of the features include; crypto assets, stock trading and also saving products. Over the years, Revolut has enjoyed a good reception in the market, as it has a customer base of around 10 million customers, and reported a 150% growth in 2019.
In order to be able to offer services like loans to its customers, Revolut has secured a European banking license from the Lithuanian central bank. In addition, the digital bank is also eyeing a U.K banking license.
According to the statement released, the bank is looking to expand its services in the United States, although the American license has proven difficult to obtain due to regulatory complexities. However, the management is hopeful the process to venture into the American market will be ready by the first half of 2020.
The company is currently offering services to countries like Singapore and also in Australia. With the new capital injection, Revolut will be in a position to increase its net of market operation and increase its bet profit in turn.
Using the new funding, the company has vowed to improve its services and also launch lending services to its users. Revolut founder and CEO Nik Storonsky said that ‘we are on a mission to build a global financial platform on a single mobile app where our customers can manage their daily finances, and this investment demonstrates investors’ confidence in our model.
Despite the streak of losses from 2018, and previous employees saga, the company is hopeful it will do well in the coming years.