London-based banking and payments app Revolut has become the most valuable British fintech company on record in British history after raising close to £600 million ($800m) in a new fundraising led by SoftBank’s Vision Fund and Tiger Global Management. The new fundraising makes the banking and payments app worth more than the market capitalisation of mainstream lender NatWest.
The company, founded by the former Lehman Brothers trader Nik Storonsky in 2015 is now worth $33 billion (£24 billion), which is six times higher than last year, when it was valued at $5.5 billion. The banking app originally launched as a pre-paid card focused on offering free currency exchange to customers in 2015. It has since expanded to 34 other countries and adding business accounts, investments and wage advance to its financial services.
UK and overseas expansion on cards
The investment will enable the company to further its growth plans, in particular its ongoing product innovation aimed at meeting customers’ everyday financial needs and aspirations, from quick and easy global transfers, to managing everything from savings to insurance, to democratising wealth and trading. It will also support the expansion of Revolut’s offering to US customers and its entry to India and other international markets.
10x better value and service
Commenting on the fundraise, Nikolay Storonsky, Founder and CEO of Revolut said: “SoftBank and Tiger Global’s investments are an endorsement of our mission to create a global financial superapp that enables customers to manage all their financial needs through a single platform. This funding round makes Revolut the UK’s most valuable fintech, demonstrating investors’ confidence that we can deliver products that raise the bar for customers’ expectations across the whole financial services industry.”
Talking about what this startup brings to the table, he added, “We want our global superapp to offer our customers 10x better value and 10x better service and security than they can achieve anywhere else. We are building a full financial product suite in a single app, where you will always find the product that best meets your needs. Our services will be increasingly personalised, responding to our customers’ daily needs, always with low and transparent fees. As we expand into new markets we are encouraged by our customers’ enthusiasm for Revolut and we look forward to using this investment to further our mission.”
Building next generation of financial services
Karol Niewiadomski, senior investor for SoftBank Investment Advisers, said: “Revolut’s rate of innovation has redefined the role of financial services, placing it at the forefront of Europe’s nascent neobanking sector. The company’s rapidly growing user base reflects a sustained demand for Revolut’s expanding suite of services. We look forward to supporting the team in continued product innovation and bringing their services to new markets globally.”
Scott Shleifer, partner, Tiger Global said: “We believe the company’s superior customer experience and focus on rapid product development put the company in a strong position to continue scaling in both existing and new geographies. We are excited to partner with Nik and the Revolut team as they build the next generation of financial services.”
More jobs in the UK
Good news that @RevolutApp has raised $800m and plans to expand even further – creating more jobs here in the UK.
— Rishi Sunak (@RishiSunak) July 15, 2021
The app, which now has a presence in 35 countries and more than 15 million customers, is in the process of applying for a UK banking licence that will allow it to take deposits in its home market.
The investment round has been supported by UK Finance Minister Rishi Sunak, who wants to grow the country’s fintech industry to help keep the financial sector competitive following Brexit. He said: “It’s great news that Revolut has raised a further $800m and plans to expand even further – creating more jobs here in the UK. We want to see even more great British fintech success stories like Revolut, which is why I’ve published a roadmap setting out how we will ensure the UK sector remains competitive, forward-looking, and dynamic.”