Revolut becomes UK’s biggest fintech firm with £24bn valuation
The banking and payments app Revolut has become the most valuable British fintech firm on record after a fresh funding round pushed its valuation to $33bn.
The company, founded by the former Lehman Brothers trader Nik Storonsky in 2015, announced on Thursday that it had raised $800m (£579m) from new investors Tiger Global Management and the major Japanese investment group SoftBank, which now hold a near 5% stake in the business.
The banking app originally launched as a pre-paid card focused on offering free currency exchange to customers in 2015. It has since expanded to 34 other countries and adding business accounts, investments and wage advance to its financial services. It holds an EU banking licence but is still awaiting similar approval in the UK.
Revolut, which is chaired by the former Standard Life Aberdeen boss Martin Gilbert, said the new funding would help fuel its marketing spending and the development of new products.
“This funding round makes Revolut the UK’s most valuable fintech, demonstrating investors’ confidence that we can deliver products that raise the bar for customers’ expectations across the whole financial services industry,” said Storonsky, who also serves as the company’s chief executive.
Its finance chief, Mikko Salovaara, denied that the funding round was a precursor to a stock market debut. “Eventually we’ll become a public company but [we have] no immediate plans to list. The new capital we’ve taken on does give us some cushion, so we can be quite flexible about the timing.”
However, when asked whether he could rule out an initial public offering by the end of the year, Salovaara said: “Never say never.”