Revolut Valued at $75 Billion in New Funding Round

Revolut has raised new funding at a $75 billion valuation, a turning-point price tag that firmly puts the British fintech in the ranks of Europe’s most valuable private technology businesses. The share sale — which was led by heavyweight growth investors, revered in Silicon Valley as pedigreed stewards of investment wisdom — also furnished liquidity for employees to sell off their shares, a growing fixture of late-stage deals as private markets thaw.

New backers bet on Revolut’s scale in fintech push

Coatue, Greenoaks, Dragoneer and Fidelity participated in the round, along with support from Nvidia’s NVentures as well as Andreessen Horowitz, Franklin Templeton and funds advised by T. Rowe Price Associates. Revolut did not say how much primary capital it was raising, but it highlighted the secondary element for staff. The step-up is relatively significant in today’s market, as the company had raised some $2.89 billion in venture funding prior to filing for its stock offering and private transactions at a post-money valuation of $48 billion in recent years, according to PitchBook.

For investors, Revolut is a blend of software-like growth with increasingly bank-ish economics. Strengthening its product suite (payments, multi-currency accounts, savings products, stock and crypto trading, insurance, business banking) offers the company multiple revenue levers that should lift average customer lifetime values — a notion well suited for long-term growth funds.

Business model depth and Revolut’s growing global footprint

Revolut, founded in 2015, has evolved from a travel card into a financial super app. It has a full banking license in Europe and also operates in markets such as the United States, Australia, Japan, New Zealand, Singapore and Brazil. The firm recently began operations in India, obtained a bank charter available for business in Mexico and is gearing up for Colombia. It has plans to both move into Argentina and open in Africa starting with South Africa, as well as expand further across the Middle East after securing an in-principle payments license in the UAE.

In the U.K., its biggest market, Revolut is still waiting for permission to operate as a full-service bank, which would enable it to intermediate deposits on a significant scale and expand into lending.

Authorisation from the Prudential Regulation Authority and the Financial Conduct Authority is a strategic priority that has potential to become transformational, significantly changing its funding mix and margins.

A moment of financial momentum and valuation math

Revolut’s top line has accelerated with its product footprint. The company posted 2024 revenue of $4 billion, a gain of 72% from the previous year, and booked net income for the period of $1 billion (£790 million). Its Wealth division, accelerated by the introduction of its separate crypto exchange Revolut X, also recorded a 298% surge in revenues to $647 million from $158 million in 2023 — indicating both how promising and how volatile products linked to crypto can be.

With roughly $4 billion in trailing sales, that suggests investors are paying about 18.8x trailing revenue, and a massive 75x trailing net income. Those multiples imply expectations of continued growth, enhanced operating leverage and greater monetization of Revolut’s customer base via subscriptions, merchant acquiring, interest income on balances and lending. Higher rates have been a tailwind to net interest income across the sector; the challenge will be managing profitability in a world where rates normalize and expansion costs increase.

Compared to Europe’s fintech peers — including several high-profile companies that have seen the value of their shares reset over the past couple of years — Revolut’s premium reflects its unusual scale and profitability. It also underscores investors’ appetite for a service that can cross-sell financial products across geographies, rather than depend on one revenue pillar.

Regulatory path and potential outcomes for a U.K. bank license

Revolut powered on despite regulatory hurdles as it challenges incumbents. The company’s U.K. banking license continues to represent the most significant near-term catalyst. Full permission would allow a bigger lending book and cheaper funding, but bring heightened capital and compliance responsibilities. Analysts say good financial reporting and strong controls are critical as the company gears up toward readiness for a possible IPO.

Another watchpoint is revenue concentration. Trading and crypto activity have pushed outsized gains when markets have been strong. A diversified range of revenue — subscriptions such as Premium and Metal, card interchange, international transfers, small business services and interest income — serves to cushion volatility, but investors will want proof of the same balanced growth in evidence so far as crypto investment trends cycle.

Global ambitions and competition across key growth markets

Its target is to have 100 million customers across roughly one hundred countries within a few years, aiming to enter 30 more markets by 2030. What that plays out to is a global push where it stands against incumbent banks and digital rivals including Monzo, N26 and Wise in different markets, and leaves room as well for regional challengers operating with solid regulatory standing. Winning will require localization — of product, pricing and compliance for each market — while still maintaining a cohesive global brand and user experience.

The roster of investors also suggests where Revolut is going tech-wise. The participation of NVentures is in line with the way the industry is moving towards AI-based fraud detection, personal financial insights and automated support. If done right, those capabilities can cut operating costs and improve retention — and thus justify the growth premium baked into today’s valuation.

What the $75 billion valuation mark tells us about Revolut

After passing that $75 billion benchmark, Revolut would get both currency and credibility: currency in terms of a pristine balance sheet, liquid stock for talent, and likely one of the largest direct listings in history (there could be some cash left over after employees sell) and credibility with regulators, partners and would-be enterprise clients. Its next act will be determined by how fast it can convert headline scale into durable, regulated banking franchises in its biggest markets — while maintaining the product velocity that got it to this point.