Revolut, a fast growing digital only challenger bank, has claimed a new crowdfunding record as over 38,000 customers have have pledged £18 million + in a crowdfunding round on Seedrs. According to information provided by the company, investors from 55 different countries pledged to participate in a pre-registration queueing process. Revolut customers received expedited access in the crowdfunding round capped at £4 million.
Revolut recently raised $66 million in a Series B funding round led by Index Ventures and included the participation of Balderton Capital and Ribbit Capital. The £4 million round listed on Seedrs is at the same deal terms as the VCs. Reportedly, Andy Murray, the Tennis champ and Seedrs advisor, participated in the offer as well.
This is not the first time Revolut has leveraged crowdfunding and a dedicated user base to raise growth capital. A year ago, Revolut raised £1 million crowdfunding a Series A round on Crowdcube. At that time, over 10,000 would-be investors pledged over £17 million, leaving the round 1000% oversubscribed. Revolut could only accept 457 individual investors.
Seedrs said the crowdfunding campaign will open in stages across this week to pre-registered customers on the same terms as Revolut’s VC investors until the capped funding target of £4 million is reached. Revolut’s Premium account holders hold preferred access to the campaign with individual investments capped at just £2,000. Once Premium account holders have filled their requests the wider customer base will be allowed to participate capped at individual investments of £1,000.
Nikolay Storonsky, Revolut founder and CEO, said they were incredibly excited to open their Series B to a far wider audience via Seedrs.
“Word of mouth by our loyal customer base is the reason that Revolut has achieved so much in just two years. As a token of our appreciation we are offering them the chance to play a longer term role in the Fintech revolution by owning equity in a fast scaling fintech as we embark on our global mission. We have committed to improving our user experience by adding a wealth of new products in the coming months. From the integration of cryptocurrency to pay-as-you-go travel insurance at the tap of a button, we are demonstrating why we go ‘Beyond Banking’. “
Seedrs co-founder and CEO Jeff Lynn expressed his satisfaction with the Revolut offer and the role his platform was able to play;
“As a frequent traveller and big fan of Revolut’s service, I have watched their progression with interest and admiration. It is great news that they secured an impressive Series B round from some highly respected international VCs, and it is better still that the crowd on Seedrs will have an opportunity to get involved with the round.”
In just two years, Revolut has acquired approximately 750,000 customers from over 42 European countries. The accomplishment occurred with almost zero marketing spend. Revolut has completed over $4.2 billion in transaction volume so far. About 2,400 new users sign up each day. Revolut modestly says it expects to reach 50 million customers in 3 years.
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The Series B now provides the war chest for Revolut to launch an “aggressive” expansion across Asia and North America. Revolut will also scale its pan-European operations adding new features for its new generation of financial services.
Revolut touts its banking service as catering to a global lifestyle. Individuals may open an account in just 60 seconds. Money transfers can be completed in 16 different currencies at no charge. A contactless MasterCard is available for its users. Most recently, Revolut launched personal IBAN accounts across Europe allowing customers to have their salary paid directly into their Revolut account. Revolut says it will soon integrate cryptocurrencies including Bitcoin, Ethereum and Litecoin as options.
Business clients are part of the package too. Revolut has launched business accounts across Europe to empower corporate offerings as well. Corporate accounts are not immune to the shift to mobile centric banking services and associated efficiencies.
Revolut has tapped into a simmering dissatisfaction consumers hold with traditional high street banks. Beleaguered consumers have endured poor customer service and unjustifiable fees for years from traditional banks. While old banks are now attempting to shift direction by updating consumer facing platforms, the legacy culture and brick & mortar mentality, have hobbled banks allowing agile, challenger banks to emerge providing superior service at a better cost. If Revolut can execute and cross the Atlantic and then push into Asia, it will be the first truly digital only bank to provide a complete banking service on a global basis.
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