Revolut eyeing funding round which would bring its valuation to $5bn

UK challenger bank Revolut is reportedly eyeing a new funding round which would value the business at $5bn (£3.85bn).

The round is expected to be led by growth equity investor Technology Crossover Ventures (TCV), according to a report from City A.M. A close for the round is expected to happen later in January.

It was previously reported the bank had hired JPMorgan to help it raise a $1.5bn round comprised of $500m equity and $1bn in convertible loans.

Technology Crossover Ventures closed a $3bn fund last year to back technology companies.

Revolut is a challenger bank which offers consumers a prepaid debit card, fee-free currency exchange, commission-free stock trading, cryptocurrency trading and P2P payments. The FinTech released a new direct debit solution which lets users sending funds into recipient’s accounts without needing to go via Visa or Mastercard.

The company originally joined the FinTech unicorn club in 2018 after it closed a $250m Series C round from DST Global, Index Ventures and Ribbit Capital. Following the investment, it had been valued at $1.7bn.

Over the past year, the digital bank has been making a push for expansion. The bank launched its services in Singapore in October and opened a new customer operation centre in Portugal in September.

Revolut is currently making moves into 24 markets including a number of Latin American countries.

UK challenger banks have had a lot of support from investors since 2014. Atom Bank has received the most funding, having collected a total of $369m, with Monzo and Revolut following.

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