Revolut is reportedly in talks with SoftBank’s Vision Fund 2 about participating in a fundraising effort that could value the banking and payment app at more than $30bn, Sky News reported.
The fund is one of several investors that London-based Revolut and its advisers asked to submit proposals in recent weeks for an investment of between $750m and $1bn, according to the report. The identity of the other funds in the discussions wasn’t clear, it said.
If completed, the transaction would instantly transform Revolut into one of the most valuable fintech companies ever launched in Europe. The new talks would mean the digital bank is now worth six times more than it was a year ago – after seeing its losses double.
Only last year, Revolut raised money from the US-based investors TCV and TSG Consumer Partners at a valuation of $5.5bn (£3.98bn).
Klarna’s recent fundraising, which saw it valued at $45.6bn, is said to have been a factor in Revolut’s ability to target a far higher valuation.
Last month, Revolut disclosed losses in 2020 of just over £200m as its rapid growth saw staff costs increase substantially. #however, it said it was profitable in the final two months of the year. The latest developments will fuel questions about the ability of loss-making technology companies to attract price tags in excess of all but the largest publicly listed companies.
Revolut’s banking app allows customers to hold money in as many as 28 currencies and convert them at real exchange rates. Revolut, which now has a presence in 35 countries and more than 15 million customers, is in the process of applying for a UK banking licence that will allow it to take deposits in its home market.
The company recently introduced an equity participation plan for its 2200 employees, which would see their stakes worth substantial sums at the latest valuation.
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