Revolut, a financial technology company headquartered in London, is reportedly looking forward to a new round of funding with the potential to value the English fintech at over GBP 7.2 billion (approximately USD 10 billion).
As reported by Sky News, the digital bank might be anticipating working with FT Partners, the Fintech-focused investment banking institution headquartered in the US.
As per the report, it is also expected that FT Partners may inform Revolut about the likely new equity round that may be finalized post the summer months of 2021.
Sources also inform that the process is not confirmed yet; however, investors of the Fintech firm have estimated the number and expect the business to be valued anywhere between USD 10 and USD 15 billion.
The deal’s potential is so high that even if the lower end is considered, it has the power to make Revolut’s Founder, Nik Storonsky, a multi-billionaire.
Revolut operates in over 35 different countries and maintains a clientele of over 15 million customers. Additionally, to secure the ability to take customer deposits, the fintech is dedicatedly focused on applying for a UK banking license.
Recent funding details
Revolut had performed an external funding round roughly 14 months back. TCV, an investor headquartered in the US, led the round that valued at an impressive GBP 361 million (approximately USD 500 million). Post the funding, the fintech has been valued at GBP 3.98 billion (approximately USD 5.5 billion).
As per the Sky News coverage, an independent plan to offer a USD 1 billion worth convertible loan was not finalized. Sources that have a fair understanding of the matter reportedly mentioned that Revolut does not have an urgent or immediate requirement for the funding. The fintech’s next equity raise is anticipated to result in a sale of about USD 250 million worth of new shares.
A few familiar sources have pointed out that accurate figures will mostly not be confirmed for a few months. The new private round is expected to set the fintech far behind in securing the status of Europe’s most valuable fintech name. This is a position that is firmly maintained by Fintech Klarna based out of Sweden.
Particularly, Storonsky mentioned that he has no plans to take Revolut public until the fintech obtains a minimum of USD 20 billion valuations.
Revolut was also approached by several SPACs even recently.
It is chaired by the veteran Martin Gilbert. Additionally, the ex-Goldman Sachs International Co-CEO, Michael Sherwood, has now his name on the bank’s board of directors list.
It is also important to know that Revolut has offered an equity participation plan for its employees.