British startup Revolut just closed its seed round. After announcing having raised $2.3 million this Summer, the company has added a couple of new investors. In total, the company has raised $4.8 million (£3.2 million) from Index Ventures, Balderton Capital, Seedcamp and Point Nine, Venrex and business angels.
Revolut provides an app to seamlessly exchange or send money in multiple currencies. It also provides a debit card to pay around the world or online. Creating a Revolut account is basically like creating an electronic wallet in three different currencies — USD, EUR and GBP. You can top up your account in any of these currencies using your credit or debit card, or a bank transfer.
After that, you can convert or send money in these currencies using the mobile app without any fee. The startup promises interbank rates and focuses on this handful of corridors for now.
You can also order a MasterCard from the app to withdraw money from your Revolut account around the world. The best part is that this card works in Europe, the U.K. and the U.S., but also in dozens of other countries. For instance, you can go to Hong Kong and withdraw HKD without any additional fee like with a Number26 card. It’s a much better deal than using your good old bank’s card.
Compared to TransferWise, you don’t need to open a bank account in another country. You can travel around the world with your Revolut card.
The startup takes a cut on every transaction from MasterCard’s cut. In other words, Revolut is probably losing money by providing unbeatable exchange rates and making money by issuing a MasterCard.
And it seems to be working as the company now has 100,000 customers who have transferred the equivalent of $200 million. The company works with Paysafe to accept payments and issue MasterCards.