Fintech platform Revolut, which has over 10m customers worldwide, has raised $500m (£379m) in a Series D funding round, taking the total amount raised by the company to $836 million.
The round was led by US-based growth capital firm TCV, with a number of existing investors also participating. The latest funding round values the business at $5.5 billion.
The new capital was secured on the back of high customer demand and engagement and a strong financial performance last year. In 2019, Revolut increased customer growth by 169 per cent, the number of daily active customers by 380 per cent, and saw financial revenues in 2018 grow by 354 per cent.
The funds will be focused on the customer experience and used to strengthen Revolut’s core retail and business offering in existing markets, with a particular focus on product development that will help accelerate daily usage of accounts. Future plans include lending services for retail and business customers, extending high interest savings accounts beyond the UK, further improving customer service and rolling out banking operations across Europe.
Revolut will also focus on further developing its Premium and Metal subscription accounts, which have proven to be a successful revenue stream for the business, growing by 154 per cent last year. These accounts include a variety of benefits for customers, such as unlimited foreign exchange, airport lounge access, commission-free stock trading and travel insurance.
The company will also continue to invest in expanding its workforce across multiple locations. It now employs over 2,000 people, and last year made a number of senior appointments across the business in order to scale up its governance. These included Martin Gilbert, the former co-chief executive of Standard Life Aberdeen, who was appointed chairman of the board; and Caroline Britton, a former audit partner at Deloitte, and Bruce Wallace, the former chief operations officer at Silicon Valley Bank, who were both appointed non-executive directors.
“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,” said Revolut founder and CEO, Nik Storonsky. “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.”