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”.
Google to annihilate inactive accounts, starting 1st December
Say goodbye to your old Gmail account. Google will start its clean-up in two days
EU Court of Justice ruling: Public service employees across EU may be banned from wearing religious symbols
The issue arose in Belgium when an employee was asked to remove to remove their headscarf at the office
Black Friday blackout: Amazon workers strike on one of its busiest days of the year
This marks Amazon UK workers' 28th day of striking since January amid allegedly being 'treated like robots'