Bitcoin

Softbank leads $800M investment for banking app Revolut

Revolut, a major British banking app featuring cryptocurrency investment, has secured $800 million in a new funding round.

The new investment round is led by Japanese financial giant SoftBank and United States hedge fund Tiger Global, which collectively hold around 5% in Revolut, CNBC reported Thursday.

The round values Revolut at $33 billion, marking a sixfold increase from the company’s valuation of $5.5 billion in 2020. The newly secured funding will help Revolut continue international expansion as well as further improve marketing and product development, Revolut chief financial officer Mikko Salovaara noted. The company is particularly focused on rolling out services in the U.S. and India, he added.

The latest financing round reportedly makes Revolut the second-largest fintech unicorn in Europe behind Swedish fintech company Klarna. It is also now the biggest fintech in the United Kingdom, flipping major payments firm Checkout.com.

Despite Revolut posting massive growth over the past year, the company has no immediate plans for an initial public offering. Salovaara said that Revolut did not rule out a potential IPO this year but suggested it was unlikely.

Revolut did not immediately respond to Cointelegraph’s request for comment.

Related: Revolut expands to Japan as its first non-English speaking market

Revolut reported nearly $240 million in annual losses last year, higher than the $140 million the company lost in 2019. Revolut CEO and co-founder Nik Storonsky previously said that the main reason for mounting losses in 2019 was an aggressive investment in global expansion and new product offerings. Revolut will continue its expansion into new services like crypto and stock trading to reach profitability in the long run, the CEO said recently.

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