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”.
That’s all folks! Netflix officially marks the end of its DVD-mailing era this week
The rental system was meant to last around four to five years, but instead it went on for 25 years
President Roberta Metsola addresses World Leaders Forum appealing to Europe and the US to ‘keep stepping up’
She argued that both the US and the EU's true strength lies in their shared dreams and values
Malta hosts talks between Washington and Beijing amid conflict-prevention strategy
This meeting follows many attempts between the two economic powers to improve communication between the US and China