Revolut is set for a new funding round that will value the company at between £7.2 billion and £10.8 billion, according to sources reported by Sky News.

San Francisco based investment banking firm FT Partners, which focuses on FinTech, is said to be advising on the deal.

The round would make Nik Storonsky, Revolut’s founder and chief executive, a dollar billionaire.
The news comes after a period of rapid expansion by the London based digital bank, which recently expanded into ten new European markets, and claimed to add another 3 million users in 2020 despite the pandemic.

Revolut applied for a UK and US banking license in January and March 2021 respectively, which would allow it to provide a wider range of products and services to consumers.

Sources said the bank did not immediately need the capital and that the round would involve the sale of $250 million of new shares.

The news comes after the digital bank raised $80 million to top off a $500 million Series D funding round from private equity firm TSG in July 2020, which valued the company at $5.5 billion.

The round would make Revolut one of Europe’s most valuable FinTechs, however its valuation falls short of the $31 billion achieved by Swedish payments firm Klarna, which secured $1 billion of equity funding in March.

This funding activity comes after FinTech investment in EMEA dropped from $61.5 billion in 2019 to $14.4 billion in 2020 according to data from KPMG, which it attributed to Brexit and Covid uncertainty.

Storonsky said in June 2019 that it would pursue a valuation of $20 billion before pursuing an initial public offering (IPO), and said in February 2020 that he felt a special purpose acquisition company (SPAC) deal would not be appropriate for Revolut.

Revolut has declined to comment on the news.

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