8.6 C
New York
Thursday, May 26, 2022
Home Challanger banks Revolut raises $800m at $33 billion valuation

Revolut raises $800m at $33 billion valuation

It is official, Softbank leads $800 million investment into Revolut, a UK-based challenger bank.

Read also: Money 20/20 is back to define the future of finance in Europe

This has driven the value of Revolut to $33 billion, which is six times its previous valuation that was estimated at $5.5 billion last year.

Revolut is now the most valuable fintech in the UK, as well as one of the biggest of the privately-backed scaled-up startups not just in Europe, but the world.

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 will use the obtained investments mainly for product development and marketing in the countries to which it is expanding, especially in the USA and India.

CFO Mikko Salovaara told reporters that despite Revolut posting massive growth over the past year, the company has no immediate plans for an initial public offering.

Salovaara said that Revolut did not rule out a potential IPO this year but suggested it was unlikely.

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.

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.

Jan Cerny
Jan is an innovation enthusiast and Fintech news reporter. He specializes in news distribution, social media, and content analysis.

Recent posts

Money 20/20: speakers and agenda

With 4,000+ attendees from 1,900+ companies and 3,100+ IRL meetings booked in 2021, Money 20/20 proved yet again that this is the fintech industry’s premier conference.

Revolut CEO Nik Storonsky launches his AI-based venture capital fund

Billionaire Nik Storonsky, the co-founder of Revolut, one of Europe's largest and richest startups, plans to launch his own AI-based venture capital fund to compete with legacy venture capitalists.

This is how Klarna will merge e-commerce with physical shopping

Klarna launches "virtual shopping" where online shoppers get access to experts in physical stores.

Revolut reached 1.7 million Irish customers

Of the 5 million population, 1.7million people from Ireland use Revolut to some extent.