Revolut to focus on product development after $500m raise

25 Feb 2020516 Views

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From left: Revolut co-founders Vladyslav Yatsenko and Nikolay Storonsky. Image: Revolut

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Revolut, which is now valued at $5.5bn after its latest funding round, plans to strengthen product development in a bid to increase user activity.

Today (25 February), Revolut announced that it has raised $500m in Series D funding, bringing the total amount raised by the company to date to $836m. Following the latest funding round, the UK fintech firm is now valued at $5.5bn.

The Series D round was led by US-based growth capital firm TCV, with a number of existing investors also participating. Following the fresh funding, Revolut is now one of the highest valued fintech companies in the world.

Plans for the funding

With the recent investment, Revolut said that it plans to work on the customer experience while strengthening its core retail and business offerings in existing markets, with a focus on product development that the firm hopes will accelerate daily usage of accounts. In 2019, Revolut saw its number of daily active customers increase by 380pc.

Beyond that, the company also said that future plans include offering lending services in existing markets to both retail and business customers. Additionally, the company wants to extend high-interest savings beyond the UK and across Europe.

Last year, the company’s premium and metal subscription accounts grew by 154pc. With the latest investment, Revolut wants to further develop these products to bring a wider variety of benefits to customers. Existing perks for premium and metal customers include unlimited foreign exchange, airport lounge access and commission-free stock trading.

The company said it will continue to invest in expanding its workforce across multiple locations. London-headquartered Revolut currently employs more than 2,000 across 23 offices, and last year made a number of senior appointments in order to scale up its governance.

Image of Revolut app open on a phone in a person’s hand in a cafe setting.

Image: Revolut

The next stage of the journey

Commenting on the funding, founder and CEO Nik Storonsky said: “We’re on a mission to build a global financial platform – a single app where our customers can manage all of their daily finance, and this investment demonstrates investor confidence in our business model.

“Going forward, our focus is on rolling-out banking operations in Europe, increasing the number of people who use Revolut as their daily account, and striving towards profitability. TCV has a long history of backing founders who are changing their industries on a global scale, so we are excited to partner with them as we prepare for the next stage of our journey.”

John Doran, general partner at TCV, added: “Using a modern technology stack and with a relentless focus on delighting customers, Revolut has built a truly exceptional customer experience that is exceeding anything that existing banks can offer.

“We look forward to supporting the team on their journey to build Revolut into one of the biggest financial services companies in the world.”

Earlier this month, it was reported that Revolut will migrate its responsibility for European payments from London to bases in Ireland and Lithuania after Brexit, with plans to hire up to 50 people in Dublin this year.

Kelly Earley is a journalist with Siliconrepublic.com

editorial@siliconrepublic.com