Revolut, the UK banking application that offers cryptocurrency investment opportunities, has received $800 million in another funding round. The new venture round is driven by Japanese financial firm SoftBank and US-based hedge fund Tiger Global, which aggregately hold around 5% in Revolut. The investments come as the company has reported massive losses over the past couple of years, and show the value in investing in cryptocurrency companies.
The round values Revolut at $33 billion, denoting a sixfold increment from the organization’s valuation of $5.5 billion last year. The funding will help Revolut proceed with worldwide extension and further development, according to CFO Mikko Salovaara. The organization is especially centered around carrying out launches in the US and India, he added.
The most recent financing round supposedly makes Revolut the second-biggest FinTech unicorn in Europe, behind Sweden’s Klarna. It is additionally now the greatest FinTech in the UK, flipping significant payments firm Checkout.com. Regardless of Revolut posting huge development over the previous year, the organization has no prompt designs for an initial public offering (IPO). Salovaara said that Revolut didn’t preclude a potential IPO this year; however, he stated that it was improbable.
Revolut detailed almost $240 million in yearly losses last year, higher than the $140 million the organization lost in 2019. Revolut co-founder and CEO Nik Storonsky recently said that the fundamental justification for mounting losses in 2019 was a forceful interest in worldwide expansion and the launch of new products. Revolut will proceed with its venture into new services, including cryptocurrency and stock trading, to eventually arrive at profitability, according to Storonsky.