London-headquartered challenger bank, Revolut has snatched $800 million in a fresh Funding Round led by SoftBank's Vision Fund and Tiger Global Management, the company confirmed on Thursday.
The deal has made Revolut one of the most valuable Fintech companies in Europe with a valuation of $33 billion. The British fintech closed its previous funding round last year at a valuation of $5.5 billion, meaning its worth jumped by six-fold.
Revolut’s ongoing talks with Softbank and other investors for funding at a similar valuation were already making headlines before the company officially announced the deal.
“SoftBank and Tiger Global’s investments are 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,” Revolut’s Co-Founder and CEO, Nikolay Storonsky, said in a statement.
Revolut has firmly established itself as a digital bank in the United Kingdom and has a strong presence in the European Economic Area as well. The company is now focused on its international expansion, particularly in the United States and India.
In addition, the company revealed that it will use the proceeds in marketing, product development and international expansion.
Bleeding Money
Last month, Revolut disclosed that its losses for the year 2020 mounted to over £200 million, mostly due to the increase in administrative costs. But, it highlighted that its business turned profitable in the last two months of the year.
Moreover, Revolut’s revenue from the fintech business is increasing, jumping 57 percent in 2020 to £261 million. However, 88.4 percent of its business was generated only from the UK market, while 10.2 percent came from the EEA.
The British fintech company operates in Europe with its banking license gained from the Bank of Lithuania. It is now applying for a banking license in the United Kingdom as well and has also applied for a banking charter in the US.
“We are building a full financial product suite in a single app, where you will always find the product that best meets your needs. Our services will be increasingly personalized, responding to our customers’ daily needs, always with low and transparent fees,” Storonsky added.
