Revolut Ltd. or Revolut, a European financial technology (fintech) company, has reached a market valuation of $5.5 billion after the company secured $500 million in Series D fundraising. With the fresh round of funding, the digital banking app, Revolut, is now confirmed to be one of the world’s most valuable financial technology firms and leading British-based business.
Revolut’s Expansion of its Operations
Revolut, which was launched in 2015, has attracted more than 10 million customers and expanded its financial services across Europe. It offers money management tools and modern banking by making a partnership with the internationally leading financial payment firms, Visa and Mastercard.
The digital company provides the pricing for foreign exchange, stock trading, and money transfers within its app for customers after it started launching New York Stock Exchange & NASDAQ stocks trading in July 2019. After launching its operations in Singapore in October 2019, the company which has a wide range of customer service in Europe planned to expand its operations in the US this year.
With its latest Series D funding round led by a US investment firm, TCMI Inc. or TCV, the company has raised total funding to $836 million since its inception. On 26 April 2018, Revolut became a business unicorn as it had reached a total valuation of $1.7 billion after it raised an additional $250 million in a funding round led by Hong Kong-based DST Global. The fintech company announced in October 2019 that it would recruit around 3,500 additional staff to support its 24 new markets.
A source claimed that Revolut became Britain’s most valuable financial technology startup in February 2020 as it secured funding that tripled its value from its previous figure. Last September, the founder and CEO of Revolut, Nik Storonsky claimed to grow its workforce to 5,000 people this year with the aim of building “a global financial platform.”
According to a report by consultancy Accenture, the British fintech industry has sharply declined as the customer growth rate across banks fell in the second half of last year from 170% to 150% and the average deposit balance also had a slowdown by a quarter to £260.
Despite some fintech including Revolut have rapidly gained its expansion of the operations, they faced several challenges to make a profitable business. With the existing harsh competition from a rival app, Monzo, Revolut had lost 33 million pounds in 2018.
In March 2019, a media Wired exposed the company’s employment activities and work culture and point out various unethical business practices including unpaid work, high staff turnover, and extra work for employees at the weekends to boost its performance indicators.
Revolut has also been facing wide criticism for the rigid work environment and a lack of effective treatment for customers. Reuters previously reported customers who had experienced financial fraud and scam related to the company made several complaints about the slow response by the digital bank’s customer service offered only in-App chat rather than a telephone helpline.
Meanwhile, Revolut has stepped up to provide effective solutions to the existing challenges by teaming up with top experience financiers including hiring Martin Gilbert, the former co-CEO of Standard Life Aberdeen, as the chairman of Revolut in November 2019.
I’m Roshan, a journalist, blogger and music lover. I like covering global news related to finance, business, and technology. Focusing on the collection of true and reliable information, I rely on working by conducting interviews with business leaders and talking to the inside sources of companies.
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