Revolut Ltd. is in the early stages of a fundraisinground that could value the British company at $20 billion or more.
Revolut Ltd. is in the early stages of a fundraisinground that could value the British company at $20 billion or more, peoplefamiliar with the matter said, as investor cash pours into fintechs.
The company has held preliminary talks withinvestors about raising funds, though no final decisions about timing or amounthave been made, the people said, asking not to be identified because thedeliberations are private. A representative for Revolut declined to comment.
Revolut Chief Executive Officer NikolayStoronsky said in an interview with Bloomberg this month that the company islooking at further fundraising but declined to discuss further. Sky News reported in April that Revolut was seeking a valuation ofmore than $10 billion.
The new money would increaseLondon-based Revolut’s valuation several times over a fundraising round in2020, when the digital banking services company raised $500 million, giving it a value of $5.5 billion.The new valuation would make Revolut the U.K.’s most valuable startup,surpassing Checkout.com’s $15 billion mark.
Revolut, which provides digital bankingservices via an app, is part of a wave of fintech startups attracting multi-billion-dollarvaluations from investors.
Swedishstartup Klarna Bank AB, which lets online customers pay for their shopping ininstallments, raised cash at a $45.6 billion valuation this month aftera series of funding rounds that more-than quadrupled its valuation in less than a year. In April, SanFrancisco-based Plaid raised new financing at a $13 billion valuation, just a fewmonths after a $5.3 billion deal with Visa fell through.
Revolut, founded in 2015, has about 15 million personal and500,000 business customers for its products, which include bank accounts, international money transfers,crypto-currency and stock trading as well as bill paying and budgeting tools.
Adjustedrevenue in 2020 rose 57% to 261 million pounds ($362 million) but operatinglosses doubled to 201 million pounds as its rapid expansion saw staff costssurge.