Revolut, which goes by the tagline that it has everything that’s money, has raised $800 million in its latest round of funding which was led by SoftBank and Tiger Global. This funding values the company at a total of $33 billion and places it in a prime position for massive expansion.
The company is already looking to enter into India with its services along with further expansion in the US and these funds are likely to be used for growth and also for adding to its large product suite in the coming months.
Nikolay Storonsky, founder & CEO of Revolut says: “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.”
It has to be noted that the company was valued at $5.5 billion just last year and a six-fold increase in the valuation of the company which is still making losses year on year has raised many eyebrows across the fintech world. It also tells us how valued the various fintech is being viewed and how the stakes in such companies are being sold like hotcakes. It remains to be seen that in the increasing competition in the coming years, how the various companies are going to fare as they fight for the same share of the pie.
Recently, we have seen many fintech companies, especially those focussed on the payments space gain a lot of attention among the investors and they have managed to raise a huge amount of funds running into several billion. Companies like Klarna also have had valuations of several billion as the European market heats up and the companies there are looking to expand into other regions like Asia and South America to improve their bottom line.
As for Revolut, it did manage to make profits over the last 2 months of 2020 but apart from that, it has not been able to be profitable on an annual basis so far. The introduction of cryptos into the platform has boosted its revenue several folds but that is still not enough to make it profitable at this time. But the investors seem to be seeing something in their business model that others don’t seem to be able to see and that is the reason why they have been pouring in money not only into Revolut but also into several fintech that is yet to be consistently profitable.