Revolut Could Garner $10bn Valuation From New Funding Drive
Revolut, one of the top neobanks in the UK, is planning a new funding drive scheduled for Q3, which hopes to raise its valuation to $10bn. Revolut’s founders, Nikolay Storonsky and Vlad Yatsenko, are seeking a collaboration with a US-based fintech investment bank, FT Partners, who will consult with them on the best strategy and organization for the upcoming drive.
Revolut’s founders could become multi-billionaires as a result of this funding drive. Their investors anticipate the possibilities for a speculative figure of $15bn, with $10bn being on the low end, despite the fact that the process hasn’t even begun yet.
UK Fintech Week
The upcoming UK Fintech Week features a speech by UK chancellor Rishi Sunak that will deliver much encouragement for fintech startups. This news ties into the theme for economic growth and change within the UK fintech market.
Revolut, a large company that employs 2,200 people, has had its share of problems, such as losing some of its executives and experiencing compliance issues. However, this round of funding and the anticipated valuation indicates that they have overcome the problems of the past and have a bright future ahead.
Despite the digital banking giant’s popularity, it did experience a huge loss due to the pandemic in August 2020 of £106.5m. There was an increase in customers and a revenue boost during the initial lockdown phase, and in November, it was able to break even for the first time in 2 years.
Growth of Revolut
Revolut was launched in July 2015, and now has over 15 million customers. Although it is based in the UK, Revolut is available in other countries, such as Ireland, Switzerland, Singapore, Australia, Canada, and the United States. Revolut’s last funding drive in January 2020 resulted in $500m in capital being raised and covered 35 countries. They continue to grow and grow.
The company is also in the process of applying for a UK banking license. While the company does not need immediate capital, the increased funding will help cover a larger expansion, allowing it to reach the position of a global bank worth approximately £250m.
Revolut is quickly becoming one of the UK’s most valuable fintech companies. However, it still has some way to go to catch up with Klarna, a Swedish fintech group, which holds the number one spot worth a staggering £31bn.
Despite the additional funding, Revolut won’t be launching an IPO until it at least hits a valuation of $20bn, Nikolay Storonsky says. We’ll just have to wait and see what happens.
This latest round of funding may prove to be just what Revolut needs to become a one-stop shop as a financial institution. Currently offering money transfers and exchanges, overseas medical insurance, ATM withdrawals, access to cryptocurrencies, and 150 available currencies at the interbank exchange rate, and a banking license for UK deposits – the company looks certain to continue to attract more investors, raising its value even more in the years to come.