TSG Consumer Partners has topped up Revolut’s Series D round with an $80m investment that will help the business introduce new products and features.
London-based fintech firm Revolut has raised a further $80m, extending the Series D round that was announced in February. To date, Revolut has raised more than $900m in capital from investors including Index Ventures, Ribbit Capital, Balderton Capital, DST Global and Draper Esprit.
The latest batch of funding comes from TSG Consumer Partners, a VC firm that has backed Zoeva, BrewDog, Smashbox Cosmetics, Huda Beauty and water businesses Voss and Vitamin Water.
The San Francisco-based private equity firm was founded in 1987 and focuses primarily on consumer product companies. In 2017, TSG invested $124m into craft beer business BrewDog for a 23pc stake in the company.
TSG’s investment in Revolut brings the company’s Series D round to a total of $580m. Revolut said that its valuation, which was estimated to be $5.5bn in February, has not changed as a result of the investment.
Revolut founder and CEO Nikolay Storonsky said: “While we were not actively looking to raise any additional capital, TSG approached us with an exciting proposition to work together.
“Given TSG’s track record of backing some of the most successful and innovative consumer companies in recent years, we were very pleased to have them on board as we accelerate the rapid adoption of our platform.”
With the latest investment, Revolut plans to add new features for customers in the US, while further rolling out its banking operations across Europe. It now has around 12m registered users across the globe.
The company has plans to offer credit products to customers in Europe in the future, as well as a new subscription management tool that lets customers see all of their active subscriptions and cancel them within the app. This tool will provide users with alerts when free trials are set to end.
When the company raised the majority of the Series D round back in February, Revolut said it would strengthen its core retail and business offerings in existing markets, with a focus on product development to accelerate daily usage of accounts.
In 2019, Revolut’s premium and metal subscription accounts grew by 154pc. The company is looking 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.
Earlier this month, Revolut announced that its new Junior feature, which was previously reserved for premium and metal customers, has been extended to standard users in Ireland. Revolut Junior, which allows parents and guardians to manage bank accounts for children, was first launched in Ireland in May.