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Softbank leads $800M investment for banking app Revolut

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The valuation of fintech Revolut, which received $ 800 million in funding in the next round of financing, reached $ 33 billion. Compared to the previous round, which took place in 2020, the company’s valuation has grown six times, making Revolut the most expensive startup in the UK.

London-based Revolut was worth just $ 5.5 billion when it raised $ 500 million in early 2020. At that time, the company attracted investments against the backdrop of increasing losses. As well as growing revenue and customer base.

However, by the second half of 2020, the bank managed to break even. And its operations were “very profitable” in the first quarter of this year.

In addition, the CEO recently announced that Revolut will continue to expand in new services such as cryptocurrency and stock trading in order to achieve long-term profitability.

In a new round, Revolut raised funds from the SoftBank structure – Vision Fund 2 and the hedge fund Tiger Global Management.

The investment round was also approved by UK Treasury Secretary Rishi Sunak. Who wants to develop the country’s fintech industry to help keep the financial sector competitive after the UK leaves the European Union.

“We want to see more of the great success stories of UK fintech like Revolut,” he said.

The company will fund new product launches and expansion into new markets, including the United States and India. Note that Revolut has accelerated its global expansion in recent years. Moving into overseas markets, including the United States, Australia and Japan.

Revolut also said they intend to go public, but currently have no plans to list.

Note that there has been a surge in demand for fintech companies lately. In the second quarter of 2021, such startups raised a record $ 33.7 billion.

What is Revolut?

Revolut is an online bank founded by Russian Nikolay Storonsky. Revolut app users can make online payments, exchange currencies, send money to each other, buy cryptocurrencies. In March, the company applied for a US banking license.

The company’s high valuation reflects the growing demand for fintech companies, Bloomberg notes. In June, Swedish rival Revolut, Klarna, also raised $ 640 million in investments. While its valuation more than quadrupled to $ 45.6 billion. In July, British fintech Wise held a direct listing on the London Stock Exchange. The company was valued at $ 11 billion.

Now about 15 million private clients and 500 thousand companies use Revolut services. Due to the company’s rapid growth in 2020, which required an increase in personnel costs, its operating loss doubled last year to £ 201 million ($ 278 million).

Recall that in May, Revolut introduced a beta version of the service that allows you to withdraw the bitcoins purchased on the platform.

The latest round of funding is said to make Revolut the second largest fintech unicorn in Europe after Swedish fintech company Klarna. It is also now the largest fintech in the United Kingdom, ahead of the largest payment firm Checkout. com.

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