London-headquartered digital banking startup Revolut is now worth as much as NatWest (NWG.L) after raising $800m to fuel its growth.
Revolut said on Thursday it had raised $800m from Softbank's Vision Fund 2 and tech-focused hedge fund Tiger Global Management in a "Series E" funding round. Revolut was valued at a mammoth $33bn (£23bn) in the deal.
UK chancellor Rishi Sunak hailed Revolut as a "great British Fintech success" on the back of the news.
Revolut's new valuation marks a significant step up from its last investment round in 2020 when the company was valued at $5.5bn. The new price tag make Revolut the UK's most valuable financial technology firm and puts it on a par with NatWest, one of Britain's "big four" banks. NatWest had a market value of £23.3bn as of Thursday.
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"SoftBank and Tiger Global’s investments are an endorsement of our mission to create a global financial superapp that enables customers to manage all their financial needs through a single platform," Revolut's cofounder and chief executive Nikolay Storonsky said in a statement.
"This funding round makes Revolut the UK’s most valuable fintech, demonstrating investors’ confidence that we can deliver products that raise the bar for customers’ expectations across the whole financial services industry."
Ex-investment bank trader Storonsky cofounded Revolut in 2015 as a foreign exchange card linked to an app. The startup has since expanded rapidly into all manner of other financial services – from trading and cryptocurrencies to bankings and insurance.
Founded and headquartered in London, it has also expanded rapidly around the world and now has operations in over 35 countries. The service boasts over 16m customers.
"Revolut’s rate of innovation has redefined the role of financial services, placing [Revolut] at the forefront of Europe’s nascent neobanking sector," Karol Niewiadomski, a senior investor for SoftBank Investment Advisers, said in a statement.
"The company’s rapidly growing user base reflects a sustained demand for Revolut’s expanding suite of services. We look forward to supporting Nikolay and the team in continued product innovation and bringing their services to new markets globally.”
Scott Shleifer, a partner at Tiger Global, said: “We believe Revolut’s superior customer experience and focus on rapid product development put the company in a strong position to continue scaling in both existing and new geographies. We are excited to partner with Nik and the Revolut team as they build the next generation of financial services.”
Revolut has raised over $1.5bn to date to fuel its growth but has yet to turn an annual profit. Recent accounts show the company lost £168m last year. The company has said underlying momentum shows it is getting closer to break even.
Storonsky said: "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 personalised, responding to our customers’ daily needs, always with low and transparent fees.
"As we expand into new markets we are encouraged by our customers’ enthusiasm for Revolut and we look forward to using this investment to further our mission."
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