British challenger bank Revolut has hit a company valuation of $5.5bn after closing a Series D round on $500m.
There have been several rumours over the past few months about Revolut’s funding round and what its valuation would end up being. Early reports pegged the FinTech to reach just $5bn, but a report from The Telegraph last week suggested the bank would reach a $6bn valuation after closing a $500m investment round.
Revolut’s Series D round was led by US growth capital firm TCV, with additional commitments coming from various existing Revolut backers.
With the fresh funds, the bank is looking to improve the customer experience and bolster its core retail and business offering in existing markets. A particular focus will be placed of product development which can increase daily usage of accounts.
Future plans of the company include a lending service for retail and business customers, extending its high interest savings account beyond the UK, improve customer service and rollout banking operations across Europe.
Furthermore, Revolut plans to deepen its premium and metal subscription accounts which grew by 154% last year, it claims. These account types offer an array of benefits including unlimited foreign exchange, airport lounge access, travel insurance and commission-free stock trading.
Revolut founder and CEO Nik Storonsky 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.”
This investment comes after Revolut witnessed customer growth of 169%, the number of daily active customers grow by 380%.
With the close of the new round, the challenger bank has raised a total of $836m. Prior to this round, it closed a $250m Series C from DST Global, Index Ventures and Ribbit Capital back in 2018, which had put the company into the unicorn club with a $1.7bn valuation.
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