Crypto-Friendly Revolut Bags $500M Despite Brexit Woes
Challenger bank attracts Silicon Valley backing
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Crypto-friendly challenger bank Revolut has secured $500M in Series D funding, putting it in pole position as the UK’s most valuable fintech startup.
Revolut a Jewel in the British Fintech Space
The funding round was led by Silicon Valley venture capital group Technology Crossover Ventures (TCV) in a deal that’s been in the pipeline for several months. Investors now value the company at $5.5 billion, making it one of Europe’s highest-valued fintech companies.
Revolut started in 2015 and gained popularity as a retail forex service, enabling users to send money abroad at low costs.
It now has over 10 million customers and has expanded its range of services to include more traditional banking and payment services. It also offers travel insurance, savings plans, and charitable donations.
Along with its banking arm, Revolut is one of the few companies that has successfully straddled the crossover between traditional finance and cryptocurrencies. Customers can purchase Bitcoin and other crypto assets using their fiat account balances.
According to the Financial Times, the British government sees the investment in Revolut as a “vote of confidence” that will help alleviate concerns that the country’s thriving fintech sector could take a hit due to Brexit.
A government minister stated that British fintech had hit record levels of investment in 2019, saying it was “a clear indicator of our strength as a place for fintech business as we leave the EU.”
However, not all challenger banks are safe from Brexit. Earlier this month, German fintech startup N26 was forced to withdraw from the UK market, citing Brexit as the reason.