Revolut, a fintech start-up based out of the UK is preparing for a new round of fundraising with the goal to reach a valuation of over USD 10 billion.
Investment bank FT Partners is advising Revolut for the round of fundraising that is scheduled to take place in the summer of 2021. The story was first reported by Sky News. At the start of 2020, the company was valued at USD 5.5 billion and raised USD
500 million in funding at the time. Though the company is not in imminent need for capital, the funds raised will be used to expand Revolut's services.
What is Revolut?
Revolut is a digital bank. It provides financial services to its users. The solution is most often used to convert currencies at the best rates, spend money globally without any fees and transfer money internationally at very low costs. The company was founded in 2015 by Nikolay Storonsky and Vlad Yatsenko.
See also: Fintech start-up TrueLayer raises $70 million
Revolut's future plans
The company had a difficult 2020. Despite an increase in its customer base, Revolut reported losses of USD 147 million in August last year. However, by November 2020 the company had broken even for the first time in two years. The company has applied
for a UK and US banking license earlier this year. There are also plans in place to apply for an e-money license in Ireland. The goal of these applications is to expand its product portfolio and offer more financial services to its users. Some of
these include loans, deposit accounts, and overdraft protection.
Q1 2021 Fintech investment in the UK
It has been a strong year for the UK fintech sector. USD 3.9 billion was raised by fintech companies in the first quarter. This is a 331% increase compared to the same period last year. The data shows that slowly but surely investors are becoming less
risk-averse and we may soon return to pre-pandemic levels of investment. The money raised in the first quarter of 2021 is equal to 69% of the total raised in all of 2020. Some of the UK companies that raised significant funds this year are:
- Checkout.com: $450 million
- Starling Bank $376 million
- Rapyd $300 million
IOM 2021: A door way for exploring for the Manufacturers
Top 5 Recruitment Tools to Consider in 2021
1. Apr 2021, T. Murden, 'Fintech investment surges 331% at start of year', Daily Business [available online] available from: https://dailybusinessgroup.co.uk/2021/04/fintech-investment-surges-331-at-start-of-year/ [accessed Apr 2021]
Featured image: Business vector created by pch.vector - www.freepik.com