Revolut, the app-only digital bank with over 10 million users worldwide, has raised a $500 million Series D funding round at a valuation of $5.5 billion. The latest investment takes its total amount raised to $836 million and makes Revolut one of the highest valued fintech companies in the world.
The Series D round was led by US growth capital firm TCV, with a number of existing backers also participating. It comes as Revolut sets its sights firmly on profitability and daily adoption in 2020.
Nik Storonsky, founder and CEO, 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. Going forward, our focus is on rolling-out banking operations in Europe, increasing the number of people who use Revolut as their daily account, and striving towards profitability.
“TCV has a long history of backing founders who are changing their industries on a global scale, so we are excited to partner with them as we prepare for the next stage of our journey.”
The new capital was secured on the back of high customer demand and engagement and a strong financial performance last year. In 2019, Revolut increased customer growth by 169%, the number of daily active customers by 380%, and saw financial revenues in 2018 grow by 354%.
The company wants to strengthen its retail and business offering in existing markets, with a particular focus on product development that will help accelerate daily usage of accounts. It will focus on further developing its Premium and Metal subscription accounts, which have proven to be a successful revenue stream for the business, growing by 154% last year.
Revolut now employees over 2,000 people across 23 offices and plans to continue expanding its workforce across multiple locations. Last year, the company appointed former Standard Life Aberdeen co-chief executive Martin Gilbert as chairman of the board.
Caroline Britton, a former audit partner at Deloitte, and Bruce Wallace, the former chief operations officer at Silicon Valley Bank, were both appointed as non-executive directors.