Revolut raises additional $80m for new services

Digital challenger bank has raised more than $900m to date and claims to have 1m customers in Ireland

Adding a Revolut Visa card into an Apple Pay digital wallet.

Adding a Revolut Visa card into an Apple Pay digital wallet.

 

Revolut, the digital bank that claims to have one million customers in the Republic, has raised an additional $80 million (€ 68.7 million) as an extension to its recent Series D round.

The additional financing brings to $580 million the amount raised by the company in the round. The new investment was led by TSG Consumer Partners, a San Francisco-based private equity firm.

Revolut said it would use it to accelerate the rollout of banking operations across Europe. These include full bank accounts and lending services, as well as to speed up production of new product lines, such as a subscription management tool, and a rewards programme for customers.

“While we were not actively looking to raise any additional capital, TSG approached us with an exciting proposition to work together, said founder and chief executive Nikolay Storonsky.

“Given TSG’s track record of backing some of the most successful and innovative consumer companies in recent years, we were very pleased to have them onboard as we accelerate the rapid adoption of our platform,” he added.

Expansion

Revolut has expanded significantly beyond its origins as a foreign exchange product. Founded in July 2015 , the company offers a range of banking options, including a current account and an easy-access savings account. It has also added features such as commission-free trading just last week it rolled out a new kid-friendly money management app and service locally to encourage financial literacy among children.

Based in London and employing some 2,000 people globally, Revolut has processed more than one billion transactions worth over $100 billion since it was founded.

The company earlier this year confirmed plans to shift responsibility for its European payments from London to Dublin as a result of Brexit in a move that sees it more than double its headcount locally.

The company has raised more than $900 million to date from backers that include Index Ventures, Ribbit Capital, Balderton Capital, DST Global and Dublin-listed Draper Esprit. It is currently valued at $5.5 billion, according to Pitchbook.