Revolut nets £63m from share sale

Digital banking app Revolut has netted £63m ($80m) from US private equity firm TSG Consumer Partners in its latest funding round.

The latest share sale is an extension of a Series D funding round that took place in February, earning Revolut £387 ($500m) and a £4.2bn ($5.5bn) valuation.

Revolut stated that its valuation remains the same and that the extra money will be used to finance the addition of new features in the US and the roll out of its operations across Europan markets.

The UK-based digital bank has acquired 12 million registered users since its establishment five years ago but it is still yet to make a profit. In 2018, it reported a £33m loss, more than double the £15m loss in the previous year. However, Revolut did more than quadruple its revenue in that time, from £13m to £58m and the company has stated that it expects to treble revenues again this year.

The extra funding bolsters Revolut’s position as the UK’s most valuable fintech startup and it comes at a time when funding for fintechs has declined due to the Covid 19 pandemic.