Digital banking firm听Revolut听has been valued at 拢24 billion in a fresh round of funding.听
The London-based听company听raised 拢579 million from听Japan’s SoftBank and New York-based Tiger Global Management, which collectively hold听less than 5% of听its stock.听
The valuation puts it ahead of 鈥楤ig Four鈥� UK bank NatWest, while听Revolut听is worth 70% of Lloyds鈥� stock market valuation.听
Revolut听is now more valuable than London-headquartered Checkout.com and second only to 鈥榖uy now pay later鈥� Swedish firm Klarna in听Europe.听
Revolut听was founded just six years ago by听former Lehman Brothers trader Nik听Storonsky听and听Vlad Yatsenko, now CEO and听CTO respectively.听Storonsky, who became the UK鈥檚 youngest self-made billionaire last year, now holds $6bn worth of听Revolut听stock.听
However, the company is yet to receive a full UK banking licence.听Its first wave of customers听were听attracted by the promise of听fee-free currency exchange, linked to a payment card,听and it now听also听offers听current account and cryptocurrency services听alongside currency exchange to听16 million听customers across 35 countries.听
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Net losses at the company increased from 拢107m to 拢168m last year, but it began to break even in the final two months of the year. CFO听Mikko Salovaara said it had been 鈥渟trongly profitable鈥� in the first quarter of this year.听
“[The investment is]听an endorsement of our mission to create a global financial super-app that enables customers to manage all their financial needs through a single platform,”听said听Storonsky.听
He also pointed to 鈥渋nvestors鈥� confidence that we can deliver products that raise the bar for customers鈥� expectations across the whole financial services industry鈥�.听
Revolut听will use the investment to expand into the Indian and US markets.听
Karol Niewiadomski, senior investor for SoftBank, said听its “rate of innovation has redefined the role of financial services, placing [Revolut] at the forefront of Europe’s nascent听neobanking听sector”.听
Salovaara said听the firm would eventually go public, but it was unlikely to do so this year.听
Chancellor Rishi Sunak said on Twitter:听鈥淕ood news that @RevolutApp听has raised $800m and plans to expand even further 鈥� creating more jobs here in the UK.听We want to see even more great British fintech success stories.鈥�听