Fintech startup Revolut looks to expand across Europe and seeks to tap the US market to give more users easy access to convenient digital banking services.
In its latest round of funding led by American firm TCV, London-based Revolut raised approximately $500 million. The round pumped up the value of the digital banking startup to $5.5 billion, making it now the UK’s most valuable fintech startup.
Much of the funds raised will be used for the company’s expansion to other countries, product development, and boost in banking operations in Europe. Nikolay Storonsky, CEO and Co-Founder of Revolut Ltd., said in a statement:
“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.”
When asked about his biggest concern within the next 12 months, Nik told Bloomberg:
“My biggest part is actually hiring the best people out there to deliver the best products to our customers. At the moment, we are 2,000 people. And I think by yearend, we hire another 1,000 people.”
Following the latest development of the British exit from the European Union, Revolut plans to move its base to Dublin, Ireland and Lithuania. But this does not mean the London office will be vacated. Richard Davies, the company’s Banking Chief Executive said:
“We remain committed to having London as our global headquarters, with Ireland planned to take on our Western Europe activities subject to authorization from the CBI. Ireland was selected as a regional hub due to our large customer base in the country, and access to a highly educated and diverse pool of talent.”
Revolut has already successfully acquired more than 8 million customers since 2015, among which are online casino players, sports betting enthusiasts, traders, and cryptocurrency holders. Despite this, Revolut still seeks to challenge traditional banking across more territories. Europe is not the only target now of the startup as it also eyes the US fintech space. One of the startup’s spokespersons said:
“U.S. consumers continue to face the issue of legacy banking systems, a lack of transparency and excessive fees. These are real problems which we can solve. There is plenty of room for both incumbent banks and technology companies to transform the U.S. financial landscape.”