- European challenger bank Revolut has raised $500 million in Series D funding from Silicon Valley growth fund TCV.
- The long-anticipated fundraising takes the startup's post-money valuation to $5.5 billion, up from $1.7 billion previously, making it one of Europe's most valuable fintech companies.
- Founded in 2015, Revolut claims to have around 7 million customers and has raised $836 million to-date.
- The company's rapid growth has been marred by questions over its workplace culture and compliance procedures.
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Revolut, one of Europe's buzziest neo-banks, has raised $500 million in Series D funding from Silicon Valley growth fund TCV taking its valuation to $5.5 billion.
The long-anticipated fundraising makes Revolut one of Europe's most valuable startups in the red-hot fintech sector. Other major European finance firms include payment firm Klarna, money transfer firm Transferwise, and OakNorth bank.
Revolut, founded in 2015 by the developer Vlad Yatsenko and the former Lehman Brothers and Credit Suisse trader Nikolay Storonsky, says it has around 7 million customers.
Reports had previously indicated that Revolut would take on some form of debt alongside the equity fundraise, but the company said this wasn't happening for now.
In 2018, filings show Revolut posted revenues of £58.2 million ($74 million) on a net loss of £32.8 million ($42 million). The company has yet to release figures for 2019, but says it has experienced considerable revenue and customer growth.
It is in the process of applying for a US banking license and has expanded into Europe, as well as into Australia.
The London-based company allows users to spend money worldwide in 150 currencies at a real-time exchange rate, with no fees, through a debit card. CEO Storonsky has previously outlined his goal of seeing the bank reach 100 million customers in the next five years and break into North American and Pacific markets. Revolut is available in 32 countries and previously signed a deal with Visa, with plans to take the number to 56.
Revolut's growth has come with increased scrutiny. Wired reported on the firm's aggressive culture and tendency to ask job applicants for free work, while The Telegraph raised questions about the startup's compliance procedures. Regarding the culture, Storonsky has acknowledged "mistakes" in the running of the firm. The firm has denied compliance lapses.