UK Financial Technology Company
Founded in 2016, Revolut recently became the United Kingdom’s most valuable Fintech.
This has happened after the company’s 37-year-old founder, Nikolay Storonsky successfully raised $800 million from investors. This brought the company’s value to a total of $33 billion, making it the most valuable financial technology in the country.
The founder currently owns over 20% of the company, which has a net worth of $7.1 billion. This is a clear increase from the $1.1 billion that Storonsky’s shares were worth in March 2020.
From a contribution point of view, the two main investors in this recent funding session have been Softbank Vision Fund and Tiger Global Management. Both companies focus on investing in technology and fintech.
Storonsky stated that the contributions from the two investors are considered an endorsement of his company’s objective of creating a “global financial super-app” that would essentially offer users all of the tools and services necessary for them to manage their finances. This objective appears to be in reach as the value of Revolut has risen by 600% since it was valued at $5.5 billion in February 2020.
The company has been successful despite an ongoing trend of losing money in an attempt to develop its infrastructure and reach more users from across the world.
The potential of the UK’s most successful Fintech
The senior investor at Softbank, Karol Niewiadomski, stated that “Revolut’s rate of innovation has redefined the role of financial services, placing [Revolut] at the forefront of Europe’s nascent neo banking sector.” It is expected that the company will continue to grow over the years to come and already has considerable expansion plans in place.
Revolut is planning to use the recently received funding to expand the services that it already offers to users in the United States. The company is also moving to enter several new markets from across the world, such as India.
Despite the fintech’s large expenditures meant to help attract more users, Storonsky has mentioned that Revolut is “now actually 50 per cent ahead in terms of revenues compared to pre-COVID levels.” This has helped reassure investors that the company’s revenues are still growing with each passing fiscal quarter.
The recent developments in blockchain technology have helped boost fintech companies up to the point where some are preparing to transition from financial intermediaries to fully-fledged digital banks.
Ever since the Global Financial Crisis, banks have made it more difficult for small and medium-sized businesses to get good deals on loans and financing solutions. This has also driven many entrepreneurs to look for new, more efficient banking and financial administration platforms.
Fintech companies have offered the best possible solution to date, by creating services and products that are suited for a wide range of clients and users.