Revolut, a London-based “superapp” provider which offers banking, investing, currency transfer and money management services, announced raising a $800 million Series E co-led by Softbank Vision Fund 2 and Tiger Global Management.
The company says it will use the funding to bring more services and promotions to its platform in order to gain users, including additional avenues like insurance, investing and trading, and credit services. Revolut says it will use the capital to help increase its user bases in the U.S. and India, according to TechCrunch.
Softbank and Tiger Global were the only investors in the round. This gives them a 5% stake in the company and brings Revolut’s valuation to $33 billion, making it the most valuable fintech in the UK, according to CNBC. The company has now raised over $1.7 billion in funding through 14 rounds and has grown its valuation sixfold since its Series D in July 2020, when it was only worth “only” $5.5 billion.
The investment was endorsed by Britain’s finance minister Rishi Sunak, and will not affect Revolut’s timetable for a potential listing, according to Reuters.
“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,” founder and CEO Nikolay Storonsky said in a statement.
Revolut currently has over 16 million customers and processes over 150 million transactions per month. The platform uses APIs to integrate its superapp into already existing banking and financial services, with its main focus on providing a user-friendly experience in-app and through customer service.
Fintech start-ups have been growing rapidly in the past year, and have raised a record $33.7 billion in Q2 of 2021, according to CB Insights. Although Revolut reported annual losses of £167.8 million in 2020, the fintech made £222.1 million in revenue last year.
The company said it hopes expansion into new crypto, stock trading and business account services will help it reach profitability in the long run, Storonsky told CNBC in a recent interview.
In other recent fintech news, payables automation platform Tipalti grew 83% in the first half of 2021 compared to 2020. Fellow super app developer M1 Finance also raised a $150 million Series E led by Softbank Vision Fund 2.