Revolut Becomes the Largest Private Technology Group in the United Kingdom

Revolut has raised an additional $800 million in a new investment round, which included participation from SoftBank’s Vision Fund 2 and Tiger Global Management, reaching a market valuation of $33 billion and becoming the most valuable British private technology company of all time.

The new investment has brought Revolut’s value to six times higher compared to the investment round held in 2020. This makes Revolut the most valuable startup from the United Kingdom, while the next on the list is Checkout.com with a valuation of $15 billion.

– The company did not even need to raise money, and the opportunities for fundraising are as great as the interest from investors, so we decided to take advantage of it – said Mikko Salovaara, Chief Financial Officer of Revolut, adding that the company is expected to go public in the capital markets over time.

The company denied that it had actively raised funds as recently as last month, and the agreement was changed a few weeks after the company approached potential investors.

– The investment and high valuation illustrate investor confidence in delivering products that raise customer expectations across the entire financial services industry – said Nikolay Storonsky, CEO of Revolut, who founded the company in 2015 along with Chief Technology Officer Vlad Yatsenko.

Revolut has stated that it will use the funds to increase marketing spending, particularly in the US and India. Additionally, the money will be used for the development of new products. A new area it will expand into is insurance, and it will deepen functionalities related to investing and trading stocks. It is quite likely that it will also introduce some form of lending, which has been a huge growth driver for fintech companies and neobanks. Net losses increased last year from £107 million to £168 million, but they have started to decrease in the last two months of the year.

Exchange fees remain the largest source of revenue for Revolut. Fees from monthly subscriptions that offer perks such as metal cards and cashback rose by 92 percent in 2020 and account for 29 percent of revenue, while revenues from foreign exchange and trading activities increased by 150 percent, with a share of 31 percent of the total.

– Revolut’s fundraising is great news; we want to see even more great British fintech success stories – said Rishi Sunak, the British Chancellor.

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