They had been making a lot of noise for a long time.
Revolut, a British fintech startup, has once again taken a turn for two reasons: the first is that it has been able to close its tenth round of financing since it was created in 2014. The largest of the series, Revolut has raised 200 million euros from the hand of three investors. DST Global, Index Ventures and Ribbit Capital, which together with the previous investors add almost 300 million euros to the European fintech startup.
On the other hand, with this operation, the financial company manages to be placed on the team of European first-line unicorns. Along with Spotify, Skype or Zalando among many others, Revolut becomes part of that group.
The objective of the round, they explain, is to continue growing in volume of users in Europe and its new fronts: United States, Canada, Singapore, Hong Kong and Australia. Between 6,000 and 8,000 new customers a day, after intense marketing campaigns across Europe, Revolut’s idea is to achieve 100 million customers in the next five years.
Fintech, no bank
It is important to differentiate Revolut’s activity in comparison to other companies in the sector. This is the case of N26, the German fintech, which, with a regulated banking license, can operate fully as a bank. Among other specifications, the Germans would have support from the german banking guarantee fund if they need it, and an implicit obligation to keep the funds they manage from their clients in deposits. It would not be like that in Revolut, an entity that takes care to name itself as a bank, it is positioned as an “alternative” to the sector. In this sense, they specify on their website, there would be no economic compensation to the users if Revolut finished suddenly its activity.
This is precisely one of the most criticized points to the company, as well as its need to grow via funding rounds. A mechanism that, according to the financial sources consulted, leaves much in doubt the financial viability of a company dedicated precisely to the digital banking sector.