Revolut’s billion-dollar push to become a global banking powerhouse

Revolut recorded pre-tax earnings of £1 billion for 2024 in April—well more than double the figure last year—due in part to higher cryptocurrency trading

Revolut, the highest-valued start-up company in Europe, is in talks for a fresh round of funding on a $65 billion valuation, sources close to the issue reported. The funding, if it goes through, would be a significant leap higher for the UK fintech as it moves to expand worldwide and strengthen its grip in the United States, the Financial Times reported.

Greenoaks and Mubadala lead the charge

The private funding round will raise around $1 billion from a mix of new shares and secondary stock sales, individuals said. US venture capital company Greenoaks is in talks to lead the round, with Abu Dhabi sovereign wealth fund Mubadala also on board. Mubadala first invested in Revolut in a 2023 secondary sale of shares at a valuation of $45 billion.

Some of the original venture capital investors, including Balderton Capital, could potentially partially cash out in this round, said sources. Greenoaks, Mubadala, and Revolut did not comment, and terms of the deal are under negotiation.

Shooting for $150 billion and more

Word of the fundraising comes just weeks after reports Revolut boss Nik Storonsky could be in for a fat pay deal if the company hits a $150 billion valuation—a target that now looks increasingly feasible. While Revolut remains privately held, the firm has grown rapidly and is positioning itself to float as early as the next couple of years.

Banking ambitions gain ground

Revolut was issued a UK banking licence in 2024 after a lengthy three-year application with the Bank of England's Prudential Regulation Authority. The issue, perceived as a regulatory turning point, came after previous warnings issued by the company's accountants BDO, which had warned it could not verify parts of its 2021 accounts.

With the UK licence now secured, Revolut is hopeful of receiving similar authorisations in other important markets, such as the US. It still waits to be approved to sell certain credit products in Britain, however, which constrains its full-service offerings in comparison to traditional banks.
Solid profits, but deposit challenge persists

Revolut recorded pre-tax earnings of £1 billion for 2024 in April—well more than double the figure last year—due in part to higher cryptocurrency trading. Revenues rose from £1.8 billion to £3.1 billion for the same time frame. The company now boasts 50 million clients worldwide.

Despite growing its users, Revolut also grapples with the issue that many fintechs understand: encouraging customers to utilize its app as an integral bank account. As per analysts, this limits its access to stable deposits, thus limiting its capacity to gain interest income and lending charges. Revolut has played down the importance of main account status, however, arguing that its business model is centred around flexibility and convenience rather than traditional banking behaviour.

Fintech in a world in transition

Revolut's pursuit of global domination comes at a time of transition in consumer patterns, regulatory scrutiny, and fintech valuations. But with affluent investors like Greenoaks and Mubadala backing it and a growing user base worldwide, Revolut is poised to continue revolutionizing digital finance—one market at a time.