British banking and payments app Revolut is in “detailed” talks with giant technology investor SoftBank that contemplate an investment valuing the FinTech company at more than $30 billion, Sky News reports.
SoftBank’s Vision Fund 2 is among several investors invited by Revolut to propose investments of between $750 million and $1 billion, Sky News reported, citing unidentified “industry sources.”
Sky News reported that Revolut representatives discussed potential investments that would come from a separate SoftBank fund in the past, but that those talks did not lead to any deals.
According to Sky News, the notion of a deal valuing Revolut at more than $30 billion comes amid a climate in which many investors were expecting the next infusion of capital would put the company’s worth at between $10 billion and $15 billion.
At the time of an investment from U.S. funds TCV and TSG Consumer Partners in 2020, Revolut was valued at $5.5 billion, Sky News reported.
Sky News noted in its article about the new investment talks: “Nik Storonsky, the company’s founder and chief executive, said recently that the company was in the early stage of talks about raising further funds while pointing out that it was not in need of additional capital.”
Revolut is based in the United Kingdom but has not completed the process of obtaining a license to accept deposits there, according to Sky News. Nevertheless, the network reported Revolut is in 35 countries and has more than 15 million customers.
In June, Revolut reported that for the fiscal year that ended at the end of calendar 2020, the company reported a 57 percent year-over-year increase in adjusted revenue and a 49 percent increase in gross margin.
In a prepared statement issued in conjunction with the earnings, company founder and Chief Executive Nikolay Storonsky said, “As the extraordinary circumstances of 2020 drove the trend towards digital financial management, we continued to innovate for customers to make their financial lives easier and accelerate daily use. We launched 24 new retail and business products, expanded into the U.S., Japan and Australia and launched banking services in Lithuania, all while significantly improving our profitability. We began 2021 with a more resilient and productive business that will enhance our trajectory towards rapid growth.”
In June of this year, the company announced upgraded or new purchase protection plans for some customers, indicating the coverage would encompass travel, entertainment and lost or stolen goods.
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