PYMNTS-MonitorEdge-May-2024

Revolut Raises $500M, Aims For Profits In 2020

VC funding expansion

After raising another $500 million in its Series D fundraising, Revolut plans to increase daily engagements and has set its sights on profitability this year, according to the company.

The global financial platform’s total raised in the funding rounds is now $836 million.

The funding round was led by U.S. growth capital firm TCV, along with other existing investors that weren’t named in the emailed press release. The round placed Revolut’s value at $5.5 billion. The number cemented Revolut’s position as one of the highest-valued fintech companies in the world.

The capital was secured by way of high customer demand and engagement, along with Revolut’s strong financial performance in the last two years. In 2019, the company increased its customer growth by 169 percent and its number of daily active customers grew by 380 percent. In 2018, it saw its financial revenues grow by 354 percent.

With the new funding, Revolut plans to focus on increasing customer satisfaction and strengthening its retail and business offerings in existing markets. The focus will specifically hone in on product development that will garner more usage of accounts per day.

In the future, Revolut plans to implement a lending service, extend its high-interest savings accounts beyond the U.K. and roll out more banking operations across Europe. Improving customer service is also a priority, a press release stated.

One focus for the company will also be its Premium and Metal subscription accounts, which proved to be formidable sources of revenue last year, the press release stated, increasing in sales 154 percent in 2019. The subscription accounts offer customers a number of services, including unlimited foreign exchange, airport lounge access, commission-free stock trading and travel insurance.

The company will also continue to grow its staff. Headquartered in London, it now employs over 2,000 people in 23 offices and has more than 10 million customers worldwide.

Earlier this year, the company announced an open banking app that purports to allow customers to access all their various bank accounts on a single app.

Promising secure and quick access, the app will help users keep track of their finances in a linear, streamlined manner, Revolut said.

PYMNTS-MonitorEdge-May-2024