Revolut has actually raised $80m in brand new money from united states personal equity team tsg consumer partners, holding on towards the $5.5bn valuation it protected earlier in the day in 2010 despite the fallout through the pandemic.
Revolut stated the investment is addressed as an expansion for the $500m series d money round it finished in february. chief executive nikolay storonsky said the lossmaking business was not earnestly seeking even more money following the bargain but stated tsg approached us with a thrilling idea be effective together.
The uk-based fintech said it would use the investment to enhance its united states business and recently-launched benefits programme.
The february deal made revolut europes joint most-valuable exclusive fintech, along side swedish shop credit group klarna. it has attracted more than 12m customers, growing from a pre-paid debit card for worldwide vacation into places including stock financial investment and gold trading. it gives full bank records in lithuania and said the latest investment would in addition help increase its banking offering into more of main and eastern european countries.
Given the present weather, were thrilled to be in these types of a powerful position to create much better banking services to folks throughout the world, mr storonsky stated.
The company has preserved its valuation despite enduring a sharp decrease in revenues considering that the start of pandemic.
The number of transactions utilizing revolut cards fell by 45 per cent as intercontinental travel seized up, which mr storonsky previously stated would trigger a dual digit revenue fall. but the decrease happens to be partly offset by an increase in earnings from solutions including cryptocurrency trading therefore the business states it still expects becoming profitable because of the end of the season.
Revoluts surfeit of investor money contrasts with several of its colleagues in fintech industry, that has struggled considering that the start of pandemic. last thirty days rival monzo had been forced to boost money at a 40 percent rebate to its previous valuation, while monese has scaled back once again ambitious plans to raise around 100m from brand new people.
Revolut has-been plagued by accusations that its fast growth resulted in poor customer support and so-called regulatory failings, however the organization has rejected the criticisms and hired a number of industry veterans to help strengthen its reputation, including chairman martin gilbert.