The fresh infusion of capital makes the digital bank startup the U.K.’s most valuable FinTech firm, with a valuation higher than legacy lender NatWest. The payments firm Wise (formerly TransferWise) was valued at $11 billion following its direct listing on the London Stock Exchange (LSE), the biggest technology listing the exchange has ever had.
Headquartered in London, Revolut was valued at $5.5 billion following a $500 million funding round last year. The company had been hoping for a $20 billion valuation last month, Reuters reported.
The new funds are being earmarked for the creation of products and to support marketing efforts in the U.S. and India, Revolut Chief Financial Officer Mikko Salovaara told reporters, according to Reuters.
“We think eventually we will be a public company but have no immediate plans to list,” Salovaara said.
Revolut was founded six years ago by former Credit Suisse trader Nik Storonsky, who serves as CEO, and developer Vladyslav Yatsenko, who serves as chief technology officer. The company now has over 16 million customers using its foreign exchange, stock trading and cryptocurrency trading products.
Chancellor of the Exchequer Rishi Sunak is looking to expand the country’s FinTech sector to maintain competition in the financial services space following Brexit.
Revolut tripled its revenue and doubled its losses at the end of last year. Storonsky said that during the “extraordinary circumstances” of the COVID-19 pandemic, the company introduced 24 new products and expanded into the U.S., Australia, and Japan.
“As the extraordinary circumstances of 2020 drove the trend toward digital financial management, we continued to innovate for customers to make their financial lives easier and accelerate daily use,” said Storonsky. Despite fast growth and numerous funding rounds, the company has not yet turned a profit.