U.K. FinTech company Revolut wants to raise as much as $1.5 billion so that it can expand globally.
According to The Financial Times, a source familiar with the matter revealed that the company has hired JPMorgan to raise $500 million in new equity from investors, as well as secure a $1 billion convertible loan.
Launched five years ago, Revolut has almost 8 million customers, offering digital financial services through a mobile application including digital debit accounts, currency exchange, budgeting and person-to-person (P2P) payments. Late last month the company announced it was expanding its partnership with Visa to include five new regions in 24 markets including Canada, Japan, Singapore and the U.S. — bringing Revolut’s total global footprint to 56 markets.
“Visa is taking an active role in working with FinTechs and emerging players who are entering the payments ecosystem at a rapid pace,” Visa Chief Product Officer Jack Forestell told PYMNTS at the time.
As part of the newly expanded partnership, Revolut will primarily issue Visa-branded cards in the global expansion.
“Not only will consumers benefit from the trust, security and globality of the Visa brand and technology, Revolut has folded additional Visa capabilities onto its platform including Visa Token Service,” he added.
Revolut’s move for new funding isn’t a surprise. Its chief operating officer Richard Davies recently announced the company’s plans to raise $500 million before the end of the year, while the $1 billion loan would convert into shares if the company received a U.S. banking licence.
But despite its growth, the company has not turned a profit. In fact, it recently reported a pre-tax loss of £33 million for 2018, which is double the amount of the previous year. In an effort to turn things around, Revolut has been busy hiring more executives with banking experience, and is expected to soon announce the hiring of City of London veteran Martin Gilbert as its new chairman.