London-based digital banking and payments app, Revolut has reached a valuation of £24 billion (€28 billion), making it the UK’s most valuable private tech company in history.
The company, which is only six years old, raised $800 million (€678 million) from Japan’s SoftBank, as well as New York-based Tiger Global Management.
Both groups will now hold a five per cent stake in Revolut, which has more than 15 million users.
The valuation is six years higher than it was last year, and comes as fintech companies across the world have exploded in value in recent years. Sweden-based payments company Klarna, for example, reached a valuation of $45.6 billion (€38.12 billion) in June.
The blisteringly high valuation comes despite poor annual figures for 2020, which saw the company record a £200 million (€233 million) loss during the year, amidst ballooning administrative costs from the company’s investment in risk, compliance and controls.
These administrative costs more than doubled, from £125 million (€146 million) in 2019 to £266 million (€311 million) in 2020, Revolut reported, overtaking growth in revenues at the company expanded into new markets.
In a statement responding to the valuation, Revolut founder Nik Storonsky stated it was “an endorsement of our mission to create a global financial super-app that enables customers to manage all their financial needs through a single platform”.
The proposal would grant consumers rights beyond the legal warranty
The nickel was bought by the bank from the London Metals Exchange
The move was welcomed by banking regulators around the world