New round of funding for Revolut in the Works, could receive valuation of over $ 30 billion: report

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Revolution, one of Europe’s leading digital banks, is working on its next funding round according to a recent report. If this is correct, Revolut should receive an evaluation of between $ 30 billion and $ 40 billion.

Sky News States that the first discussions include SoftBank Vision Fund 2 and Revolut is seeking up to $ 1 billion in additional capital.

A report from last spring indicated that Revolution forecast a new round of funding with a valuation of around $ 10 billion – significantly less than this most recent report.

The subscription banking platform is currently operating in over 35 countries with most of its users based in the UK. Revolut claims more than 15 million customers and more than 500,000 professional accounts. Revolut is known for its disruptive position in the digital banking industry, providing frequent iterations and updates while attracting a younger population with services such as cryptocurrency trading.

Revolut also targeted the highly fragmented US market and said it was pursuing a national banking charter – a key move to provide services in all 50 states.

A year ago, Revolut closed a Series D funding round with an extension of $ 80 million, for a total of $ 580 million at a valuation of $ 5.5 billion. At that time, Revolut reported around 12 million users.

Most recently, Revolut released its annual figures for the year ending December 2020. Revolut said adjusted revenue increased 57% from £ 166million in 2019 to £ 261million in 2020. Gross profit is said to have increased by 215% to £ 123 million with a gross margin of almost 50%. The first quarter of 2021 would have generated revenue of 130% compared to the same period the previous year. Over the past two years, Revolut has talked about turning the cap into profitability – something that could happen in 2021.

Critics note that many customers do not use Revolut as their primary bank – something the company has worked hard to change with a more for less and foremost digital banking platform.

The aforementioned SkyNews report notes that if the rumored valuation holds true, Revolut will become one of the most valuable fintechs ever launched in Europe.

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