Revolut, a top European digital bank, is working on its next funding round according to a recent report. If accurate, Revolut is anticipated to receive a valuation of between $30 billion and $40 billion.
Sky News states that early discussions include SoftBank’s Vision Fund 2 and Revolut is looking for up to $1 billion in additional capital.
A report from this past spring indicated that Revolut was planning a new round of funding with a valuation of around $10 billion – significantly less than this most recent report.
The subscription-based banking platform is currently operating in 35+ countries with most of its users based in the UK. Revolut claims over 15 million customers along with 500,000+ business accounts. Revolut is known for its disruptive stance in the digital banking sector providing frequent iterations and updates while appealing to a younger demographic with services like cryptocurrency trading.
Revolut has also targeted the highly fragmented US market and has said it is pursuing a national bank charter – a key move to provide services across all 50 states.
One year ago, Revolut, closed a Series D round with an $80 million extension, for a total of $580 million at a $5.5 billion valuation. At that time, Revolut reported approximately 12 million users.
More recently, Revolut published its annual numbers for the year ending December 2020. Revolut said that adjusted revenues increased by 57% from £166 million in 2019, to £261 million in 2020. Gross profit was said to have increased by 215% to £123 million with a gross margin of almost 50%. Q1 of 2021 was said to have generated revenues of 130% versus the same period year prior. For the past two years, Revolut has talked about turning the corner into profitability – something that may take place in 2021.
Detractors note that many customers do not use Revolut as their primary bank – something the company has worked hard to change with a more for less and digital-first banking platform.
The aforementioned report by SkyNews notes that if the rumored valuation holds true, Revolut will emerge as one of the most valuable Fintechs to ever launch in Europe.