Banking app Revolut valued at more than £4bn in new fundraising
BRITISH banking app Revolut will expand overseas as it raised a further 500 million US dollars (£387 million) from investors, valuing the business at 5.5 billion US dollars (£4.3 billion).
The business said that a US investor and several of its current shareholders have poured the cash into the business as it tries to increase the number of customers who use the app every day.
"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," said founder and chief executive Nik Storonsky.
The business said that its new valuation is one of the highest of any financial technology (fintech) companies around the world.
In June last year, one of Revolut's main rivals Monzo was valued at more than £2 billion, as it raised £113 million from investors.
Just two months later, the Swedish payments firm Klarna, which is backed by Snoop Dogg, announced it had been valued at 5.5 billion dollars, making it Europe's largest private fintech firm.
Revolut's new funding was led by US growth capital fund TCV, but also brought along several of the bank's former investors.
It comes on the back of strong growth from the company.
Last year, the number of daily active users increased by 380 per cent, and revenues ballooned by more than 350 per cent.
Revolut was set up in 2015 as a way to spend money while abroad without swingeing fees.
It has since added several other services, including everyday banking.
It now boasts over eight million customers and employs more than 2,000 people.
"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," Mr Storonsky said.
John Glen, the economic secretary to the Treasury and City minister said: "It is clear that the UK fintech sector continues to thrive and Revolut's announcement, which comes on the back of record-breaking fintech venture capital investment in 2019, is a clear indicator of our strength as a place for fintech business as we leave the EU."
Revolut has raised 836 million US dollars (£647 million) since it was founded.