After about two years of speculation, challenger bank Revolut has finally closed its latest funding round, which reportedly pushed its valuation past the $6bn valuation mark despite rumours suggesting it would only get a $5bn valuation.
The most important word in that last sentence is “reportedly” as the UK FinTech company has yet to officially announce the results of its latest capital injection. Revolut is expected to officially reveal the results of the raise next week.
However, those previous speculations seemed to have been right on the money when it came to which investor would lead the round.
Technology Crossover Ventures, a Silicon Valley fund, spearheaded the raise and reportedly contributed $150m to the round. The investor has previously backed accounting platform Xero and digital money transfer company WorldRemit, among others.
Bond Capital, a new growth fund launched in 2019, also injected new capital as did existing investor Ribbit Capital. Ribbit Capital has previously backed Brazilian challenger bank Nubank, Indian payment company Razorpay, and retail investing and trading mobile app Robinhood, to mention a few.
The new $6bn valuation would put Revolut far ahead of chief rival Monzo, which has an estimated valuation of $2.5bn.
Nevertheless, both challenger banks are still not profitable, which caused Monzo some headache in 2019 when investors became irate when the digital bank had to roll back its premium offering.
Revolut’s COO Richard Davies has, however, expressed some bullishness about its ability to soon be profitable.
The new raise comes almost a month after Revolut unveiled a new feature for its UK Metal card holders, who pay £116 per year for their memberships, who would now be able to earn interest of up to 1.35% on their savings through Revolut’s new Savings Vaults feature.
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