A UK digital banking app is worth £24 billion after its latest funding round – making it the nation’s most valuable private tech startup ever.
London-headquartered Revolut, which has more than 16 million customers worldwide, is now more valuable than high street bank NatWest.
The fintech raised $800 (£579m) from two new investors in its series E funding round – Japan’s SoftBank and New York-based Tiger Global management.
Each now holds a five per cent stake in Revolut, which is worth six times more than what is was valued last year
The investment will enable the tech giant to expand into the Indian and US markets.
The six-year-old company provides currency exchange, current account and cryptocurrency services for customers across 35 countries but is still in the process of attaining a UK banking licence.
Nikolay Storonsky, founder and chief executive of Revolut said: “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. 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.
Storonsky added: “We want our global superapp to offer our customers 10x better value and 10x better service and security than they can achieve anywhere else. 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.”
Karol Niewiadomski, senior investor for SoftBank Investment Advisers, said: “Revolut’s rate of innovation has redefined the role of financial services, placing Revolut at the forefront of Europe’s nascent neobanking sector. 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, partner, 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.”
Rishi Sunak, chancellor of the exchequer, said: “It’s great news that Revolut has raised a further $800m and plans to expand even further – creating more jobs here in the UK.
“We want to see even more great British fintech success stories like Revolut, which is why I’ve published a roadmap setting out how we will ensure the UK sector remains competitive, forward-looking, and dynamic.”