British fintech startup attracted record investments

British fintech startup with Russian roots Revolut attracted $ 500 million investment and became one of the leaders of a private European fintech, according to Bloomberg. According to the publication, during the round, the startup’s valuation was $ 5.5 billion.

The current round of funding has made Revolut one of the most expensive European startups in the sector. Other major European financial companies include payment company Klarna, money transfer company Transferwise and OakNorth Bank.

The leading investor in the round is Technology Crossover Ventures, an early investor in companies such as Facebook and Netflix, which could invest about $ 150 million. The company also attracted support from current investors, including Ribbit Capital, DST Global, Lakestar and GP Bullhound. .

Thus, Revolut’s valuation tripled compared to the last round of investments when the startup was valued by investors at $ 1.7 billion in April 2018. Then the startup raised $ 250 million from DST Global Yuri Milner and other funds.

In 2018, according to reports, Revolut made a profit of £ 58.2 million ($ 74 million), and a net loss of £ 32.8 million ($ 42 million). The company has not yet published figures for 2019, but says it has experienced significant growth in revenue and customer numbers.

Revolut recently added new features to the application, including cryptocurrency and stock trading. Currently, its client base has more than 10 million users, and in 2019 the growth in the number of users exceeded 150%. At the end of 2018, the company also received an European banking license from the Central Bank of Lithuania, which, according to it, will help the company offer more services, such as loans. The firm also seeks to obtain a UK banking license.

The company is in the process of applying for an American banking license (it is planned to launch service in the USA in the first half of 2020) and has expanded its activities in Europe as well as in Australia. Among direct competitors are British firms Monzo and Starling, as well as the German company N26.

The startup will direct the received investments to further product development and expansion of banking operations in Europe. Revolut plans to start lending to individuals and legal entities and improve user services.

Revolut was founded in 2015 by the developer Vlad Yatsenko and the former trader Lehman Brothers and Credit Suisse Nikolai Perestorsky. The company issues cards with several currency accounts and allows customers to exchange one currency for another without bank fees.

The Revolut service consists of a mobile application and a payment card tied to several dozens of accounts in dollars, euros and other currencies at once, which allows clients to convert money without a commission. As explained in one of the interviews by Perestorsky himself, currency exchange takes place at the interbank rate.

Storonsky’s share in Revolut is 30%, Forbes reported earlier, citing sources. The publication assesses the state of the businessman after the announced attraction of investment in a startup at $ 1.65 billion.


Storonsky has previously outlined the goal – in the next five years, Revolut should attract 100 million customers and enter the North American and Pacific markets. Revolut is available in 32 countries, and a deal with Visa was previously signed, within which it is planned to bring this figure to 56.

Revolut should officially announce the results of the round before February 23, 2020.

Comments (No)

Leave a Reply

+ 79 = 83