Revolut raises USD 800m Series E at USD 33bn valuation

New investors SoftBank Vision Fund 2 and Tiger Global Management participated in the round.

The company said the investment would enable it to further its growth plans, in particular its ongoing product innovation. It will also support the expansion of Revolut’s offering to US customers and its entry to India and other international markets, the business said.

Tiger Global and SoftBank cited the company’s "rapidly growing" user base, sustained demand for its services, "superior" customer experience and focus on rapid product development as key attractive factors behind the investment.

In February 2020, Technology Crossover Ventures led a Series D USD 500m funding round, in which Bond Capital and Ribbit also participated. Five months later, Revolut raised USD 80m in a Series D extension from private equity firm TSG Consumer Partners. According to a report in TechCrunch at the time, the Series D valued Revolut at USD 5.5bn.

Prior to the Series D extension, it had raised USD 903m in total. By comparison, the early stages of the company saw Balderton lead a GBP 1.5m round in July 2015.

This latest investment is among the largest venture rounds ever recorded in Europe, according to Unquote Data.

Softbank is no stranger to mega-rounds in Europe's fintech space, having recently backed Swedish payment service provider Klarna in a USD 640m round. That June investment valued the business at USD 46bn, cementing Klarna's status as the most valuable European fintech unicorn, with Revolut now a close second.

Prior to that, Klarna had raised USD 650m in a round led by Silverlake, giving it a valuation of USD 10.65bn (nearly double Klarna's valuation of USD 5.5bn from August 2019, when it raised USD 460m from Dragoneer and other investors).

Online bank Monzo - seen as a closer competitor to Revolut - raised a further GBP 60m in late 2020. The new funding came from several new backers, including Deliveroo and Stripe investor Novator, Kaiser and TED Global, as well as existing investor Goodwater. The company suffered through the lockdown, Unquote reported at the time, with its valuation dropping from GBP 2bn to GBP 1.24bn from 2019 to 2020.

Company
Founded in 2015 and based in London, Revolut is a fintech company that offers digital banking to customers through an app. It allows customers to send and receive money and also offers stock trading and budgeting tools. The company said it has more than 16 million customers around the world and is involved in more than 150 million transactions a month.

In figures disclosed in June, Revolut reported USD 361m in revenue for 2020, a 57% increase on 2019's USD 229m. Gross profit reached USD 170m, although the company's non-adjusted operating loss stood at USD 277m.

People
Revolut - Nikolay Storonsky (CEO).

Update (16/07/2021): this article was amended to reflect that Revolut is the second most valuable fintech in Europe behind Klarna, and not the most valuable as previously stated

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