Revolut valued at $5bn by investors ahead of new fundraising

17 Jan 2020

Challenger Revolut is on its way to a $5 billion valuation according to the investor leading its upcoming funding round, which is expected to raise $500 million with the addition of a $1 billion convertible loan from JP Morgan.

Investor Technology Crossover Ventures (TCV) shared documents with Financial News which confirmed the round is expected to close in January and will leave the digital bank with a valuation nearly three times its last estimated valuation of $1.7 billion in April 2018.

This may come as a slight disappointment to Revolut’s CEO Nikolay Storonsky, after Sky News reports last year revealed Revolut had been looking at a valuation of between $7 billion and $8 billion from the 2020 funding round.

Despite losses doubling to £33 million ($43 million) in 2018 – even though revenue increased 354% the same year – the challenger went full steam ahead with its global expansion and major hiring spree in 2019.

Its deal with Visa allowed it to set up shop in eight new countries, reaching four of these (Singapore, the US, Australia and Canada) before the year was out. News of the deal came with a following announcement that it was set to hire 3,500 new staff.