Revolut in talks to raise new funding at $65bn valuation

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Revolut is in talks to raise new funding from investors at a $65bn valuation, according to people familiar with the matter, in a transaction that would fuel global expansion for Europe’s most valuable start-up.

The UK-based financial technology group is in discussions to raise about $1bn of funding via newly issued shares and the sale of some existing stock, two of the people said.

The US investment firm Greenoaks is in talks to lead the private funding round, one person said, cautioning that details had not been finalised. 

Mubadala, the Abu Dhabi sovereign investor, is also in discussions to participate in the round, another person said.

Mubadala invested in Revolut for the first time last year, when the fintech conducted a sale of existing shares at a $45bn valuation. 

Revolut has previously been backed by venture capital firms including Index and Balderton. Balderton is among the firms that could sell some of its Revolut stake in the latest fundraising, two people said.

Revolut, Greenoaks and Balderton declined to comment. Mubadala did not immediately respond to a request for comment.

The Financial Times reported in June that Revolut chief executive Nik Storonsky was in line for an outsized compensation package should the company reach a $150bn valuation. 

The fintech’s latest fundraising round would be used to help finance its plans for global expansion.

Revolut is aiming to make inroads into the lucrative US market, hoping that its user-friendly app will attract users. 

The company was awarded a UK banking licence in 2024, after a three-year wrangle with regulators.

The drawn-out process came as Revolut’s auditors, BDO, warned they were unable to fully verify the group’s 2021 financial results.

But the UK licence obtained from the Bank of England’s Prudential Regulation Authority was seen as a vote of confidence in Revolut, and increased the likelihood of approvals in other key jurisdictions, including the US. 

Despite the approval, Revolut has yet to be awarded a licence from British regulators that would allow it to provide certain credit services.

In April, Revolut reported that its pre-tax profits had more than doubled to £1bn last year, in part due to a surge in cryptocurrency trading. Revenues rose to £3.1bn, from £1.8bn one year earlier.

While its customer numbers have grown to 50mn globally, Revolut, like other fintechs, has struggled to persuade users to have their wages paid into accounts held with the company.

Critics have said the limited deposits that Revolut has secured from users potentially inhibits the scale of the fees they can charge customers.

But Revolut has downplayed the importance of its users having so-called primary accounts with the company.