- Venture capital firms including Softbank's Vision Fund have invested in Revolut's sixth fundraising round
- The company has ambitious growth plans
Mikko Salovaara, chief financial officer at Revolut has called the fundraising environment “very strong”. That’s probably an understatement. The neobank has just raised $800m (£566m) in its sixth fundraising round in six years to give it a valuation of $33bn (£24bn). That makes it the UK’s most valuable venture-backed company, Europe’s second most valuable fintech company and more valuable than high street banking giant NatWest (NWG).
There’s little in the reported numbers to justify such a wild valuation. Customer numbers (up 45 per cent in the retail arm and 127 per cent in the business arm in 2020) might be heading in the right direction, taking customer balances (up 96 per cent to £4.6bn) and total revenues (up 57 per cent to £261m) along for the ride. But losses are widening as the company bears the true cost of being a bank - administrative expenses rose from £125m in 2019 to £266m in 2020 as management enhanced its risk and compliance functions.