Revolut, the London-based fintech that offers a digital banking account and sprawling set of other financial services, is disclosing that it has raised a whopping $250 million in Series C funding, less than three years since launching.
The new round, which gives the company a $1.7 billion post-money valuation — a five-fold increase in under a year, we’re told — was led by Hong Kong based DST Global, along with a group of new and existing investors that includes Index Ventures, and Ribbit Capital. In case you aren’t keeping up, it brings the total amount raised by Revolut to $340 million in less than 36 months.
To put this into context, TransferWise — London’s undisputed fintech darling and on some features a direct competitor to Revolut — recently announced $280 million in Series D investment, giving the company a reported post-money valuation of $1.6 billion. The difference? It took TransferWise seven years compared to Revolut’s three.
That’s testament to how much value investors are now placing on bank-disrupting fintech or perhaps signs of a fintech bubble. Or both. It is also worth remembering that these are private valuations with neither company yet to float on the public markets, even if TranserWise looks increasingly a candidate to do so.
Meanwhile, Revolut says the new round of funding and surge in valuation follows “incredible growth figures to date,” with the fintech now processing $1.8 billion through the platform each month and signing up between 6,000 and 8,000 new customers every day.
It claims nearly 2 million customers in total, of which 250,000 are daily active users, roughly 400,000 are weekly active users and 900,000 are monthly active users. The company says the target is 100 million customers in the next five years.
For a little more context, TransferWise has 3 million customers. I’m also told U.K. challenger bank Monzo now has 630,000 current account customers, of which 200,000 are daily active users, 360,000 are weekly active users and 500,000 are monthly active users. (In both Revolut and Monzo’s case, active users are defined as making at least one financial transaction.)
With the aim of persuading both consumers and businesses to ditch their traditional bank, Revolut offers most of the features you’d expect of a current account, including physical and virtual debit cards, direct debits and money transfer. Its “attack vector” (to borrow Monzo’s Tom Blomfield’s phrase) was originally low exchange fees when spending in a foreign currency, which undoubtedly fuelled much of the startup’s early growth and mindshare, but new features and products are being added at an increasingly fast pace.
Many of these are through partnerships with other fintech companies, and include travel insurance, phone insurance, credit, savings, and cryptocurrency. The latter looks like riding the hype cycle almost perfectly. Revolut is also applying for a European banking license, which would enable it to begin balance sheet lending, too.
To that end, Revolut says the Series C funding will be used to go beyond Europe and expand worldwide, starting with the U.S., Canada, Singapore, Hong Kong, and Australia this year. The company also expects to increase its workforce from 350 to around 800 employees in 2018.