Revolut becomes most valuable fintech startup
Martin Gilbert: chairman of new bank (pic: Terry Murden)
Digital bank Revolut has become the UK’s most valuable financial technology startup after a funding round more than tripled its value to £4.2 billion.
The bank, chaired by outgoing Standard Life Aberdeen executive Martin Gilbert, raised $500m (£387m) from a group of investors led by the US fund Technology Crossover Ventures.
Some existing investors are also participating in today’s funding round, but Revolut has not said which ones. Previous investors include DST Global, Index Ventures and Balderton Capital.
Revolut was previously valued at £1.3bn and has grown rapidly since its launch in 2015 with a pre-paid card product focused on offering free currency exchange to customers.
It has expanded into current accounts, business banking, cryptocurrency and stock trading, and has 10 million customers worldwide. The total number of users has grown by 169% in 2019 and daily active customers by 380% over the same period.
The company employs 2,000 staff across 23 global offices, 500 of whom are based in Canary Wharf and about 1,000 staff at its Krakow base in Poland.
Revolut co-founder and CEO Nik Storonsky said in a statement: “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.
“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.”
The valuation of Revolut puts it ahead of rival digital bank Monzo, which was valued at £2bn last year. But like its rivals – including Starling – Revolut does not expect to make a profit any time soon. It reported a pre-tax loss of £33m in 2018, more than double the £15m loss a year earlier.
The fund-raising follows speculation that JP Morgan Chase will launch its own digital retail bank under the Chase brand.