Revolut has raised $80m in new funding from US non-public fairness group TSG Client Companions, holding on to the $5.5bn valuation it secured earlier this 12 months regardless of the fallout from the pandemic.
Revolut stated the funding can be handled as an extension of the $500m “Series D” funding spherical it accomplished in February. Chief government Nikolay Storonsky stated the lossmaking firm was not actively looking for extra capital after the deal however stated “TSG approached us with an exciting proposition to work together”.
The UK-based fintech stated it will use the funding to increase its US enterprise and recently-launched rewards programme.
The February deal made Revolut Europe’s joint most-valuable non-public fintech, together with Swedish retailer credit score group Klarna. It has attracted greater than 12m clients, increasing from a pre-paid debit card for worldwide journey into areas reminiscent of stock funding and gold buying and selling. It gives full bank accounts in Lithuania and stated the newest funding would additionally assist increase its banking providing into extra of central and japanese Europe.
“Given the current climate, we’re delighted to be in such a strong position to bring better banking services to people around the world,” Mr Storonsky stated.
The corporate has maintained its valuation regardless of struggling a pointy decline in revenues for the reason that begin of the pandemic.
The variety of transactions utilizing Revolut playing cards fell by 45 per cent as worldwide journey seized up, which Mr Storonsky beforehand stated would result in a “double digit” income fall. Nevertheless, the decline has been partially offset by a rise in revenue from companies reminiscent of cryptocurrency buying and selling and the corporate has stated it nonetheless expects to be worthwhile by the top of the 12 months.
Revolut’s surfeit of investor cash contrasts with a lot of its friends within the fintech trade, which has struggled for the reason that begin of the pandemic. Final month rival Monzo was compelled to boost cash at a 40 per cent low cost to its earlier valuation, whereas Monese has scaled again formidable plans to boost as much as £100m from new buyers.
Revolut has been stricken by accusations that its fast progress led to poor customer support and alleged regulatory failings, however the firm has denied the criticisms and employed a number of trade veterans to assist strengthen its status, together with chairman Martin Gilbert.