Revolut Valuation Jumps to $33 Billion after Softbank Funding
Digital banking app Revolut raised nearly $800 million in a new funding round led by Softbank's Vision Fund and Tiger Global Management. After the investment, the company is now valued at around $33 billion.
Revolut became Britain's most valuable fintech firm and on is now worth slightly more than the market capitalisation of mainstream lender NatWest. Revolut was worth $5.5 in early 2020 after raising $500 million. It has been eyeing a valuation of around $20 billion as recently as June last year.
Extremely high valuations are common in the fintech sector. Revolut now has more than 16 million customers with products including foreign exchange, stock trading and cryptocurrencies. It is undercutting mainstream banks' prices, which is drawing new customers.
But the high valuation doesn't com with profitability thoough. Its annual losses have doubled in the last financial year on investment in risk controls. Revolut accelerated its global expansion, pushing into markets including the United States, Australia and Japan.
Money acquired from investment will be used to help product development and marketing in countries that Revolut is expanding into, particularly the U.S. and India, Chief Financial Officer Mikko Salovaara said. The fundraising would not affect the timetable for any potential listing of Revolut, added Salovaara. "We think eventually we will be a public company but have no immediate plans to list."