The challenger bank Revolut just announced that it has raised $80 million as part of its Series D round that it announced in February. This new funding comes from TSG Consumer Partners.
Revolut is also surprisingly holding on to the $5.5bn valuation it secured earlier this year despite the fallout from the pandemic. For example, Monzo bank that is also a key market player in the U.K. with more than 4 million customers, has confirmed it has closed £60 million in top-up funding last month. However, the paper value of the Revolut’s competitor dropped from £2.0 billion to £1.25 billion.
The $80m is in addition to the $500m in funding that Revolut raised earlier this year, taking its total amount raised to date to $917m. TSG is a Silicon Valley private equity firm that has backed the likes of Brewdog, water brand Voss and Smashbox Cosmetics.
“While we were not actively looking to raise any additional capital, TSG approached us with an exciting proposition to work together,” said Nik Storonsky, Revolut co-founder and chief executive.
“Given TSG’s track record of backing some of the most successful and innovative consumer companies in recent years, we were very pleased to have them onboard as we accelerate the rapid adoption of our platform.”
The number of transactions using Revolut cards fell by 45 per cent as international travel seized up, which Mr Storonsky previously said would lead to a “double digit” revenue fall.
However, the decline has been partially offset by an increase in income from services such as cryptocurrency trading and the company has said it still expects to be profitable by the end of the year.