On February 24, UK-based fintech startup Revolut announced that it secured $500 million in series D funding. Silicon Valley-centered venture capital firm TCV (Facebook, Netflix) led the round. As a result of its latest cash injection, the online banking service is now valued at $5.5 billion.
What is Revolut?
Founded in 2015, Revolut has received $837 million in outside investments to date. The firm has attracted investor attention due to the disruptive nature of its product, an international banking app. The program allows users to open debit accounts and provides them with sleek stainless steel payment cards.
The Revolut app gives consumers the ability to hold, exchange, and receive funds in 28 currencies. Moreover, the service provides users with access to 55,000 surcharge-free ATMs worldwide and offers recurring payment and bill splitting features.
The London-based company also provides its users with spending analytics and budget planning support.
Revolut CEO Nik Storonsky told Bloomberg his firm would use its newly acquired capital to expand its services in Europe. At present, 10 million people use the company’s application, but the startup’s leadership intends to grow its user base to 100 million by 2025.
To fulfill that ambition, the fintech startup intends to hire 1,000 new employees. Besides, Revolut’s website teases some appealing new features. The firm will offer high-yield savings, Bitcoin and Ethereum exchange, direct depositing, charitable donations, and interpolated banking services.
While Revolut has an ambitious roadmap, its growth to date suggests it’s not an unrealistic one. In 2017, the firm generated $16.56 billion in revenue. One year later, the company recorded $63 million in sales. And in 2019, the startup’s expanded its daily active customer base by 380 percent.
2020 is the Year of the Fintech Startup
Although its growth rate and funding totals are remarkable, Revolut is only one of many fintech startups to find success in 2020.
In January, two emerging firms secured a total of $80 million in Series B funding. First, French company Lydia secured $45 million in outside investments. Notably, Chinese tech conglomerate Tencent led the app’s latest funding round. The corporation’s interest makes sense as 25 percent of the Gallic nation’s under 30-year-olds use the service.
In addition, Lagos-based firm Flutterwave landed $35 million in investments last month. The four-year-old fintech startup offers a B2B payment platform that allows businesses to create customized payment apps. So far, the company operates in seven African nations as well as the United Kingdom and has processed more than $5.4 billion in transactions.
Furthermore, payment processing giant Visa paid $5.3 billion to acquire fintech firm Plaid in January. Before being acquired, the eight-year-old Silicon Valley concern developed APIs that allowed banks to interface their networks with those of various fintech firms.
Also, earlier this month, Boston-based payments startup Flywire achieved unicorn status after receiving a $120 million cash injection. Finance sector titan Goldman Sachs led the Series E funding round alongside Bain Capital Ventures and Accel. Now only nine years into its existence, the payment processing platform counts Harvard and the Massachusetts Institute of Technology among its customers.
With Revolut’s recent success, the financial technology sector shows no signs of cooling. In fact, historians may come to typify 2020 as the year of the fintech startup.