Revolut

neobanks / digital banks

FOUNDING YEAR: 2015
LOCATION: United Kingdom
Last Update: 01/05/2020

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About

Revolut offers its customers a global money app that claims to cut hidden cross-border fees to zero. It allows customers to exchange currencies at perfect interbank rates, send money through social networks and spend with a multi-currency card everywhere Mastercard is accepted. It also facilitates users with all services on their mobile app. The online and in-store purchases done by the card are free of charges and the ATM withdrawals done by the customer, provides them with the local currency at the best possible exchange rate. Revolut plans to add support for cryptocurrencies, stocks, and bonds. It is also going to expand to North America and Asia. Recently, the company applied for a banking license in Lithuania. Revolut also plans to build its own payment processing network. (Nov. 2017)

Focus

PRODUCTS & SERVICES

Revolut's app enables remittance through social media and app-based banking service for local and international merchants. The company offers various products and services such as: 1) Remittance App: It is a mobile app that allows users to send money across the world with real-time exchange rates. It also supports money transfer services in over 120 countries globally. Users can create their Revolut account and load money via a debit card, credit card or bank transfer. It also provides a feature where users can transfer money through their social media channels. 2) Prepaid Debit Card: It allows users to make international purchases without incurring expensive fees and at lower exchange rates. It also allows users to hold money in as many as 25 different currencies within the account and exchange between them at the current market rate without transaction fees. It offers spending notifications, transaction categorization, and budgeting tools through the mobile app. 3) Online Loans: It is an online platform that offers personal loans for home renovations, big purchases, wedding plans and electronic goods through their lending partner. The platform allows users to request loan amounts ranging from £500 up to £25,000 and with flexible repayment terms between 12 to 60 months. 4) Device insurance: It offers digital insurance plans for mobile phones which covers screen breakage, battery failure, touch screen malfunction, and other damages. 5) Travel Insurance: It offers travelers with Pay-per-Day Travel Insurance that uses geolocation technology to automatically switch on cover only when you’re abroad. The feature gives users the option to add friends and family on the go, as well as add additional winter sports coverage at the tap of a button. Services: Revolut offers card & current accounts services for businesses in the UK & Europe. It offers services like real-time exchange rates, instant settlements, cross-border payments, multicurrency cards, and expense reports. Revolut also enables customers to buy, hold and exchange cryptocurrencies like Bitcoin, Litecoin and Ethereum through the app. It also helps them to buy cryptocurrency in all 25 base currencies and eliminate the FX fees that they have to bear while buying on most exchanges.

REVENUE MODEL

The company generates revenue from various channels: 1) It offers accounts for users/businesses and charges monthly fees. For users: $6.99 per month to premium accounts. For businesses: Monthly fee ranging from £25.00 – £1,000 per month; varies on business requirements. 2) It collects nominal fee/commission from merchants whenever the card is used. 3) It receives fees for insurance plans.

MAIN CLIENTS

Merchants and individuals

EXISTING PARTNERSHIPS

Partnership with Lending Works to provide short-term credit facility to their customers. Partnership with Thomas Cook to provide travel insurance to their customers.

COMMENT

It has recently started building open APIs to allow customers to automate these processes from their own systems. This will enable businesses to make instant, mass-payouts globally. Other features include free and instant money transfers between companies that have signed on to Revolut for Business, real-time spending notifications, and dedicated customer support.

Traction

VALUATION / MARKET CAP:

$357.5 M in 2017

VALUATION COMMENT:

The company was valued around $1.4 to $1.7 B in the recent Series C funding round. (April 2018)

REVENUE

$1.0M - $4.99M in 2017

REVENUE COMMENT:

The company's revenue is around $2.3 Mn. (July 2017)

NUMBER OF TRANSACTIONS:

18 B in 2018

TRANSACTIONS COMMENT:

The company has reported that it has processed 70+ M transaction with the total volume of $10 B to date. Also, it's monthly transaction volume surged to $1.5 billion, an increase of over 700 percent in the last 12 months. (March 2018)

ACTIVE USERS COMMENT:

In March 2018, the company has signed up around 2.0 Mn users to the mobile app. Also, it is signing up 8,000 new customers every day to the platform. It targets to add more than 100 million customers in the next five years. The company claims that they have 250,000 are daily active users, and 400,000 are weekly active users and 900,000 are monthly active users. (April 2018)

OTHER INFO:

The company has recently reported that half of its 1 Mn user base currently resides in the UK, with more than 150,000 users based in France, 60,000 in the Baltics, and over 50,000 in countries such as Germany and Ireland. It also revealed company data showing that they saved their users over £120 Mn in foreign exchange fees to date, with savings primarily coming from card payments abroad, global money transfers, and international ATM withdrawals. (Nov. 2017)

TRACTION COMMENT:

The company is planning to expand their business operations from European countries to other regions like United States, Canda, Singapore, Hong Kong, India, Brazil, Australia, and New Zealand. (March 2018)

People

FOUNDERS

Nikolay Storonsky

Vlad Yatsenko

BOARD MEMBERS AND ADVISORS

Nikolay Storonsky

Vladyslav Yatsenko

NUMBER OF EMPLOYEES

1000+

INVESTORS:

Andy Murray

Balderton Capital

Crowdcube

DST Global

Index Ventures

MasterCard Start Path

Point Nine Capital

Ribbit Capital

Seedcamp

Venrex Investment Management

KEY EMPLOYEES:

Nikolay Storonsky (CEO); Vlad Yatsenko (CTO)

COMMENT:

Vlad, one of the co-founders, has 10 years of experience in building software systems for tier one investment banks. Prior to Revolut, Vlad worked as an application developer in LabCompute, Deutsche Bank,,UBS Investment Bank. Co-founder Nikolay has seven years of experience as a trader in private equity markets from Credit Suisse,Lehman Brothers.

Momentum

FUNDED

YES

TOTAL FUNDING

$336.95 M

DATE OF LAST FUNDING

Mar 2019

TOTAL FUNDING COMMENT

The company intends to use the funds to expand the global team, starting with the United States, Canada, Singapore, Hongkong and Australia in 2018. It will also mean an increase in staff. The company is focusing on attracting engineers and designers. (April 2018)

SEED & PRIOR FUNDING

$5.31 M

SEED CLOSED ON

Feb 2016

FUNDING SERIES

SERIES A  · $9.01 M  · Jul 2016

SERIES B  · $66 M  · Jul 2017

SERIES C  · $250 M  · Apr 2018

CROWDFUNDING

$6.63 M

LISTED

NO

Innovation Programs

BASICS

FOUNDING YEAR:

2015

LOCATION:

United Kingdom

Views:

379 VISITORS | 712 VIEWS
LATEST FUNDING ROUND

$337 M

TOTAL EMPLOYEES
1000+

About

Revolut offers its customers a global money app that claims to cut hidden cross-border fees to zero. It allows customers to exchange currencies at perfect interbank rates, send money through social networks and spend with a multi-currency card everywhere Mastercard is accepted. It also facilitates users with all services on their mobile app. The online and in-store purchases done by the card are free of charges and the ATM withdrawals done by the customer, provides them with the local currency at the best possible exchange rate. Revolut plans to add support for cryptocurrencies, stocks, and bonds. It is also going to expand to North America and Asia. Recently, the company applied for a banking license in Lithuania. Revolut also plans to build its own payment processing network. (Nov. 2017)

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