The digital bank Revolut has become the UK’s most valuable financial technology startup after a funding round that more than tripled its value to £4.2bn.
The company launched in 2015 by former Credit Suisse trader Nik Storonsky as part of the new wave of challenger banks, alongside Monzo and Starling, that wanted to upend the staid banking industry.
Revolut will use the cash for product development and to increase banking operations across Europe, it said in a statement on Tuesday.
Forrester senior analyst Aurélie L’Hostis, comments: “Revolut has done tremendously well, acquiring users across geographies at lighting speed, and launching a subscription model that made the startup the highest revenue earner among its UK peers. But we’re now entering the reality-check phase for challenger banks. Investors will be looking for reassurance that Revolut can achieve sustainable organic growth.”
Revolut founder Nick Storonsky says: “Going forward, our focus is on rolling out banking operations in Europe, increasing the number of people who use Revolut as their daily account and striving towards profitability. TCV has a long history of backing founders who are changing their industries on a global scale, so we are excited to partner with them as we prepare for the next stage of our journey.”
Revolut bolstered its executive ranks in 2019, hiring former Metro Bank Plc finance director Dave MacLean as chief financial officer and naming Standard Life Aberdeen executive Martin Gilbert as chairman.
The company will likely add another 1,000 employees by the end of the year to the 2,000 it has now, Storonsky said in the interview. About 200 of those new hires will be in the compliance department, he said.