By Aisling Finn on Tuesday 25 February 2020
This latest round of funding brings the total raised by the digital bank to $836m.
Revolut, one of the UK’s largest digital banks, has today announced it has raised $500m in a Series D funding round.
The most recent funding round was led by TCV, a US-based investment firm, as well as several unnamed existing investors.
Both Revolut and TCV refused to disclose how much exactly TCV had invested in this round.
TCV has previously invested in some of the world’s largest companies, such as Facebook, Netflix, Airbnb and Spotify among many more.
The choice to use an American-based investment company does not come as a surprise, as the US has become a growing focus for Revolut following the bank’s launch in the country in 2019 with a Mastercard-backed card.
The London-based digital bank is now valued at roughly $5.5bn, making it one of the highest valued fintechs in the world.
According to Revolut it “increased customer growth by 169%, the number of daily active customers by 380%, and saw financial revenues in 2018 grow by 354%", with Premium and Metal subscriptions growing "by 154% last year", despite the digital bank still not turning a profit.
AltFi asked Revolut what the base number for these figures were, but it declined to reveal that information.
Earlier reports indicated that Revolut was also working on a $1bn (£790m) convertible loan, however, there was no mention of that today.
Revolut says the new capital will be used to increase its core retail and business offerings and provide a better customer experience.
Nikolay Storonsky, founder and CEO at Revolut, said: “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 announcement comes just a day after KPMG revealed British fintech investment reached record levels, almost doubling from $25.4bn in 2018 to $48.5bn last year, the number of deals made in the UK also reached a six-year high.
Revolut does not have a UK banking licence, rather, the digital bank holds a European banking licence, similar to N26 the German bank that recently announced they are due to leave the UK citing Brexit as the reason.