Revolut is reportedly in talks with SoftBank about a funding round worth between $750 million to $1 billion with a deal expected to be a few weeks away.
This action could mean that Revolut’s valuation will be set between $30bn and $40bn. Revolut achieved a $5.5bn valuation last January when it completed its $500m Series D round.
SoftBank Vision Fund 2 has also backed firms such as Uber Technologies and the buy-now-pay-later Swedish giant Klarna, which is the most valuable FinTech so far.
Klarna reached a $45.6bn valuation on the back of a $639m SoftBank-led funding round in June.
Revolut generated revenues of £261 million ($361 million) in 2020. This means Revolut made 57% more compared to the £166 million revenue it made a year earlier.
At the end of 2020, Revolut had 14.5 million personal customers and 500,000 companies that used Revolut Business.
However, the operating losses (which also consist of crypto revaluation income but not from share-based payments) of £122 million mean a sharp increase from the £98.4 million loss in 2019.
“As the extraordinary circumstances of 2020 drove the trend towards digital financial management we continued to innovate for customers to make their financial lives easier and accelerate daily use. We launched 24 new retail and business products, expanded into the US, Japan and Australia and launched banking services in Lithuania, all while significantly improving our profitability,” founder and CEO Nikolay Storonsky said in a statement.
Revolut CEO Nik Storonsky also explained that the company decided to shift its focus during Covid-19 to more profitable markets like crypto and stock trading.
Revolut announced this previously with a statement: “2021! Revolut’s year of crypto. A whole year to bring you new features, new tokens, and a few other surprises along the way. You asked for new tokens, we’ve delivered. We’ve been tracking hot tokens and top movers to bring our UK and EU customers 11 new cryptocurrencies.”
Revolut’s competitor, German challenger N26 has recently also decided to move into crypto with the new feature coming live at the end of the year.