Revolut is reportedly wrapping a $3 billion fundraising effort valuing the FinTech at $75 billion.
The British company has been notifying investors of the allocation of shares they’ll receive from this oversubscribed funding round, Bloomberg News reported Friday (Oct. 17), citing sources familiar with the matter.
Those sources said Revolut conducted the fundraising on its own without assistance from its usual banking partners. The round will both solidify the company’s status as the most valuable startup in Europe and — per Bloomberg’s sources — help it enter dozens of new markets. The company’s offerings include banking products such as checking.
PYMNTS has contacted Revolut for comment but has not yet gotten a reply.
Revolut’s last funding effort came a little more than a year ago, with a secondary share sale valuing the firm at $45 billion.
Revolut is a digital bank that offers checking and savings accounts, cross-border money transfers, cryptocurrency and stock trading.
The company has been expanding throughout the world in recent years, including into the U.S., where Revolut last month introduced a new high-yield savings account.
Revolut is also “actively looking” at whether to acquire a U.S. bank or to apply for its own banking license there, Sid Jajodia, Revolut’s U.S. CEO and global chief banking officer, told Reuters last month.
He told the news outlet that “being a bank in every market we operate in is critical,” especially in the U.S. where Revolut’s business is still expanding.
As noted here at the beginning of this month, the “U.S. offers fertile ground for expansion: Gen Z, the first generation of true digital natives, is beginning to accumulate income, savings and purchasing power — and their expectations for banking services align neatly with the digital-first DNA of those providers.”
Research by PYMNTS Intelligence shows how attractive a demographic Gen Z is to the digital banking world, with 72% of this group saying they use a digital wallet at least once per a week, and 62% saying they’d consider making a neobank their primary bank account provider.
And close to 70% told PYMNTS “they prefer to manage their financial lives entirely online, underscoring the digital-first mindset that plays to neobanks’ strengths,” that report said.
In other Revolut news, the company last week announced that it had acquired Swifty, a startup offering an artificial intelligence (AI)-powered travel agent. The companies say that Swifty’s technology will be integrated into Revolut’s loyalty program to help the company bolster the development of its AI-powered financial assistant.
Source: https://www.pymnts.com/
