Digital bank Revolut has raised $80 million in additional capital. The new funding is said to be an extension of a $500 million round, at a $5.5 billion valuation, revealed last February – just in the nick of time as COVID set in causing many VCs to hit the pause button.
According to the FT, the new money came from TSG Consumer Partners.
Revolut has been on a long march to expand its services around the world. The digital bank has set up operations in Asia as well as the United States – a tough and competitive market when it comes to traditional and neo-banking.
In February, Revolut said the funding was secured due to high customer demand and strong financial performance.
Of note is the fact that Storonsky has said in the past that the digital bank will become profitable at some point this year. It is not certain how COVID will impact that event.
Revolut currently reports over 12 million customers plus 400,000 business users. The digital bank operates in 35 different countries.
Meanwhile, some Fintech observers wonder if digital banks can effectively compete in the long run with traditional financial services firms that have deep banking experience like Goldman Sachs’ (NYSE:GS) Marcus bank brand. Marcus reported a significant increase in deposits during the most recent earnings call.
— Christian Faes (@ChristianFaes) July 15, 2020