UK fintech Revolut raises $80m regardless of pandemic fallout

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Revolut has raised $80m in new funding from US personal fairness group TSG Shopper Companions, holding on to the $5.5bn valuation it secured earlier this yr regardless of the fallout from the pandemic.

Revolut mentioned the funding can be handled as an extension of the $500m “Sequence D” funding spherical it accomplished in February. Chief govt Nikolay Storonsky mentioned the lossmaking firm was not actively searching for extra capital after the deal however mentioned “TSG approached us with an thrilling proposition to work collectively”.

The UK-based fintech mentioned it might use the funding to broaden its US enterprise and recently-launched rewards programme.

The February deal made Revolut Europe’s joint most-valuable personal fintech, together with Swedish retailer credit score group Klarna. It has attracted greater than 12m clients, increasing from a pre-paid debit card for worldwide journey into areas akin to inventory funding and gold buying and selling. It presents full financial institution accounts in Lithuania and mentioned the most recent funding would additionally assist broaden its banking providing into extra of central and jap Europe.

“Given the present local weather, we’re delighted to be in such a powerful place to convey higher banking companies to individuals all over the world,” Mr Storonsky mentioned.

The corporate has maintained its valuation regardless of struggling a pointy decline in revenues because the begin of the pandemic.

The variety of transactions utilizing Revolut playing cards fell by 45 per cent as worldwide journey seized up, which Mr Storonsky beforehand mentioned would result in a “double digit” income fall. Nevertheless, the decline has been partially offset by a rise in earnings from companies akin to cryptocurrency buying and selling and the corporate has mentioned it nonetheless expects to be worthwhile by the tip of the yr.

Revolut’s surfeit of investor money contrasts with lots of its friends within the fintech business, which has struggled because the begin of the pandemic. Final month rival Monzo was pressured to boost money at a 40 per cent low cost to its earlier valuation, whereas Monese has scaled again bold plans to boost as much as £100m from new traders.

Revolut has been tormented by accusations that its fast progress led to poor customer support and alleged regulatory failings, however the firm has denied the criticisms and employed a number of business veterans to assist strengthen its fame, together with chairman Martin Gilbert.

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