Revolut valued at $7 billion ahead of latest fundraiser
U.K. digital payments provider and challenger bank Revolut is closing soon on its latest fundraising round with investors, including Technology Crossover Ventures, providing a $7 billion to $8 billion valuation for the startup.
Menlo Park, Calif.-based venture capital firm Technology Crossover Ventures (TCV) is proposing to commit a substantial portion of a $500 million equity raise for Revolut, which would include other investors. According to a report from Sky News, Revolut is also seeking to raise an additional $1 billion in debt, giving the startup a $1.5 billion infusion to its operations.
The most likely uses of the new funding will be to fuel the startup’s recently announced global expansion efforts, which in recent months have included the U.S. and Singapore.
Revolut has already been able to raise more than $336 million in funding over 13 rounds, according to Crunchbase, a website that tracks investments in private companies. Revolut’s Series C round, which concluded in April 2018, raised $250 million and catapulted the firm to Unicorn status with a $1.5 billion valuation. The Series C round was led by DST Global, according to Crunchbase.
TCV’s leadership of Revolut’s latest fundraiser provides significant credibility to the firm in the eyes of potential investors as well as working partners, particularly if Revolut becomes a public company. TCV is a well-known Silicon Valley venture capitalist firm with early stage investments in Spotify, Netflix and Airbnb. It has also made notable investments in Zillow, Facebook, Payoneer, Peloton, Xero and other successful startups that have blossomed into public companies or billion-dollar valuations.
In October, Revolut announced it would use Bottomline Technologies' Universal Aggregator to manage a software-based real-time payments button that would enable its customers to use the U.K.'s Faster Payments Scheme, considered a key move to support mobile payments in the U.K.
In September, Revolut announced that it was using Visa to help its global footprint by adding 24 new markets, bringing its mobile-based services to a total of 56 markets.
Mastercard announced in October that it would work in partnership with Revolut to launch its cards in the U.S. by the end of the year. The U.S. deal is part of a larger global Mastercard deal Revolut had entered in earlier. Revolut has also joined the card network’s accelerator program, “Mastercard Start Path,” as reported in July 2016 by Crunchbase.