London-based challenger bank Revolut secures €460M funding, valued at €5B

London-based challenger-bank Revolut works with the vision to build a digital and sustainable alternative to traditional banks. Its mission is to help customers improve their financial health, promot financial cohesion across communities and empower customers to have more control.

Founded in 2015 by Nikolay Storonsky, Vlad Yatsenko, has over 10 million global customers. It witnessed high customer demand and engagement and a strong financial performance in 2019. Also, the customer growth for last year was 169% with a 380% growth in the daily active customers. Eventually, Revolut was named Deloitte’s fastest growing UK fintech in 2019.

Secures €460M Series D funding

Now, Revolut has announced that it has raised €460 million Series D funding led by US-based growth capital firm TCV along with support from existing investors. With this fresh investment, the overall funding raised by the fintech accounts to €769 million. And, the new round of funding positions Revolut among the highest valued fintechs in the world with a valuation of nearly €5 billion.

Eyes to optimise customer experience

With the new investment, Revolut aims to optimise customer experience, core retail, and business offerings and product development. Customers can expect future plans such as lending services for business and retail customers, optimised customer service, expansion of high-interest savings accounts outside of the UK, and banking operations across Europe.

Developments to Premium, Metal accounts

Furthermore, the challenger ban intends to focus on developing its premium and Metal subscription accounts that have proven to be a successful revenue stream for the company with a growth of over 154% in 2019. Notably, the Premium and Metal accounts provide a variety of benefits such as unlimited foreign exchange, commission-free stock trading, airport lounge access, and travel insurance.

Expansion plans

Revolut plans for geographical expansion and will continue growing its team across several locations. Last year, the fintech made a slew of senior appointments to realise this plan.

Regarding the new investment, Nik Storonsky, Founder & CEO at Revolut said: “We’re on a mission to build a global financial platform – a single app where our customers can manage all of their daily finances, and this investment demonstrates investor confidence in our business model.”

Main image picture credits: Revolut

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