Digital banking startup Revolut raises $250M at a valuation of $1.7B – TechCrunch

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Revolut, the London-based fintech that gives a digital banking account and sprawling set of different monetary providers, is disclosing that it has raised a whopping $250 million in Sequence C funding, lower than three years since launching.

The brand new spherical, which provides the corporate a $1.7 billion post-money valuation — a five-fold enhance in beneath a yr, we’re instructed — was led by Hong Kong primarily based DST International, together with a bunch of recent and current traders that features Index Ventures, and Ribbit Capital. In case you aren’t maintaining, it brings the entire quantity raised by Revolut to $340 million in lower than 36 months.

To place this into context, TransferWise — London’s undisputed fintech darling and on some contains a direct competitor to Revolut — not too long ago introduced $280 million in Sequence D funding, giving the corporate a reported post-money valuation of $1.6 billion. The distinction? It took TransferWise seven years in comparison with Revolut’s three.

That’s testomony to how a lot worth traders are actually putting on bank-disrupting fintech or maybe indicators of a fintech bubble. Or each. It’s also value remembering that these are non-public valuations with neither firm but to drift on the general public markets, even when TranserWise appears more and more a candidate to take action.

In the meantime, Revolut says the brand new spherical of funding and surge in valuation follows “unimaginable progress figures thus far,” with the fintech now processing $1.eight billion by the platform every month and signing up between 6,000 and eight,000 new prospects day-after-day.

It claims almost 2 million prospects in whole, of which 250,000 are every day lively customers, roughly 400,000 are weekly lively customers and 900,000 are month-to-month lively customers. The corporate says the goal is 100 million prospects within the subsequent 5 years.

For just a little extra context, TransferWise has three million prospects. I’m additionally instructed U.Okay. challenger financial institution Monzo now has 630,000 present account prospects, of which 200,000 are every day lively customers, 360,000 are weekly lively customers and 500,000 are month-to-month lively customers. (In each Revolut and Monzo’s case, lively customers are outlined as making at the least one monetary transaction.)

With the purpose of persuading each customers and companies to ditch their conventional financial institution, Revolut provides many of the options you’d count on of a present account, together with bodily and digital debit playing cards, direct debits and cash switch. Its “assault vector” (to borrow Monzo’s Tom Blomfield’s phrase) was initially low alternate charges when spending in a international forex, which undoubtedly fuelled a lot of the startup’s early progress and mindshare, however new options and merchandise are being added at an more and more quick tempo.

Many of those are by partnerships with different fintech firms, and embody journey insurance coverage, cellphone insurance coverage, credit score, financial savings, and cryptocurrency. The latter appears like using the hype cycle virtually completely. Revolut can be making use of for a European banking license, which might allow it to start steadiness sheet lending, too.

To that finish, Revolut says the Sequence C funding will probably be used to transcend Europe and develop worldwide, beginning with the U.S., Canada, Singapore, Hong Kong, and Australia this yr. The corporate additionally expects to extend its workforce from 350 to round 800 staff in 2018.

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