Revolut
Revolut Ltd. is a British financial technology company founded in July 2015 by Nikolay Storonsky and Vlad Yatsenko, headquartered in London, that delivers banking, payment, investment, and cryptocurrency services via a mobile application.[1][2]
The platform enables users to hold multi-currency accounts, execute international transfers at interbank rates, trade stocks and commodities, and access savings products with competitive interest yields, serving over 65 million customers across more than 40 countries as of 2025.[3][4]
Revolut has achieved rapid growth, attaining unicorn status shortly after inception, reaching a $45 billion valuation in its 2024 funding round led by investors including Tiger Global Management, and generating $2.2 billion in revenue for 2023 with positive net income.[4][5]
However, the firm has encountered regulatory hurdles, including a €3.5 million fine in April 2025 from Lithuanian authorities for shortcomings in anti-money laundering controls and ongoing delays in securing a full UK banking licence from the Prudential Regulation Authority due to apprehensions regarding the scalability of its global risk management practices amid aggressive expansion.[6][7][8]
History
Founding and Early Operations (2015–2017)
Revolut was founded in July 2015 by Nikolay Storonsky, a Russian-born former equity derivatives trader at Credit Suisse, and Vlad Yatsenko, a Ukrainian software engineer with experience at Deutsche Bank, in London, United Kingdom.[5][9] The duo's motivation stemmed from frustrations with exorbitant foreign exchange fees encountered during personal travel, leading them to develop a mobile app offering real-time currency conversions at interbank rates without hidden charges.[1] Initially based at the Level39 fintech incubator in Canary Wharf, the app provided users with a virtual account, multi-currency wallet, and prepaid contactless Mastercard, enabling instant transfers and spending abroad.[10] In July 2015, shortly after launch, Revolut raised $2.3 million (£1.5 million) in seed funding led by Balderton Capital to build out its payment infrastructure and expand user onboarding.[9] The company followed this with a Series A round of £6.5 million ($8.5 million) in 2016 from investors including Index Ventures and Seedcamp.[11] Regulatory progress accelerated in May 2016 when Revolut received authorization as an electronic money institution from the Financial Conduct Authority (FCA) after applying in January, permitting it to issue e-money, safeguard funds, and handle payments under the Electronic Money Regulations 2011.[12] By that point, the platform had already processed over $500 million in card transactions, demonstrating early viability despite operating in a beta-like phase with limited features.[12] User adoption grew swiftly, surpassing 100,000 registered users by mid-2016 through word-of-mouth and targeted marketing to frequent travelers.[5] In June 2017, Revolut introduced business accounts with subscription tiers for SMEs, offering expense management and international payments. The year closed with a $66 million Series B round from investors including Tryggve Maartmann-Moe and a $5.3 million equity crowdfunding campaign on Seedrs that was oversubscribed by over 40,000 participants, pushing total users beyond 1 million and signaling strong retail demand amid competition from legacy banks.[13][14][15]Expansion and Key Milestones (2018–2022)
In 2018, Revolut secured a specialized banking license from the Bank of Lithuania in December, transitioning from an e-money institution to a fully licensed bank under EU regulations, which provided customer deposits with protection up to €100,000 via the European Deposit Insurance Scheme.[16][17] This milestone enabled the rollout of deposit-taking services across the European Economic Area (EEA) and supported further product diversification, including the launch of the premium Revolut Metal subscription tier offering enhanced cashback and insurance benefits.[18] Earlier that year, on April 26, Revolut raised $250 million in a Series C funding round led by DST Global, achieving unicorn status with a $1.7 billion valuation and fueling international hiring and infrastructure investments.[10] By 2019 and 2020, Revolut accelerated geographic expansion, entering markets such as Australia, Singapore, and Japan while navigating regulatory hurdles in the US with a limited beta launch focused on remittances and crypto services.[1] In February 2020, the company secured $500 million in funding led by TCV, elevating its valuation to $5.5 billion and underscoring investor confidence amid rapid user acquisition, with transaction volumes surging due to increased digital payment adoption during the early COVID-19 pandemic.[19] Product innovations included the introduction of stock and commodities trading features, broadening its appeal beyond core FX and payments to investment services for retail users.[4] In 2021, Revolut's growth intensified with a $800 million Series E round in July, led by SoftBank and Tiger Global, propelling its valuation to $33 billion and enabling aggressive scaling of operations, including the addition of crypto staking and junior accounts for minors.[20] December marked a pivotal regulatory achievement when the European Central Bank, via the Bank of Lithuania, upgraded Revolut's license to a full banking charter, allowing unrestricted lending and deposit activities across the EEA and enhancing competitive positioning against traditional banks.[21] This facilitated launches like personal loans in select markets and solidified Revolut's super-app ambitions. By 2022, Revolut reached 26 million customers globally, adding nearly 10 million new users amid a 45% revenue increase to £923 million, driven by expanded paid subscriptions (up 55%) and deposit growth (up 71%).[1][20] Key product rollouts included loans in Ireland, Romania, and the US, alongside buy-now-pay-later options in Ireland, while employee headcount doubled to around 6,000 to support operations in over 35 countries; however, challenges persisted with UK banking license delays due to regulatory scrutiny over compliance and risk management.[1][22]Recent Developments and Global Push (2023–2025)
In 2023, Revolut launched operations in Brazil and New Zealand, marking its entry into additional emerging markets beyond Europe and established regions.[23] The company reported revenue of £1.8 billion ($2.2 billion) for the year, driven by customer growth and diversified income streams including interest on deposits and cryptocurrency trading.[24] By 2024, Revolut achieved revenue of £3.1 billion ($4.0 billion), a 72% increase from 2023, alongside a pretax profit of £1.1 billion ($1.4 billion), reflecting robust expansion in wealth management and trading products, with the wealth division's revenue surging 298% to $647 million.[24][25] Customer numbers exceeded 50 million globally, up from approximately 35 million at the start of the year, fueled by organic growth and market penetration.[23] In August 2024, a secondary share sale valued the company at $45 billion, positioning it as Europe's most valuable private tech firm at the time.[26] Revolut intensified its global push in 2025, announcing plans to invest $13 billion toward reaching 100 million customers by mid-2027, with a focus on high-growth regions in APAC, Latin America, and the Middle East.[27] Key entries included securing in-principle approval for two payment licenses in the UAE in September, enabling localized services there.[28] In October, Mexico granted Revolut its first banking license outside Europe, facilitating a full banking launch as part of broader Latin American scaling efforts, including deepened operations in Brazil.[29] Preparations advanced for an India launch following a payments license obtained in April, targeting affluent users in that market.[30] The company pursued over 10 additional global licenses and established Paris as its European headquarters while applying for a French banking license to support continental expansion.[31][32] Regulatory hurdles persisted, particularly in the UK, where full banking license approval was delayed in October 2025 due to concerns over risk management scalability amid rapid international growth.[33] Despite operating under a restricted license since 2021, Revolut continued to prioritize compliance enhancements alongside its aggressive market entries.[34]Business Model and Financial Performance
Funding Rounds, Valuation, and Investors
Revolut has raised approximately $5 billion in total funding across more than 14 rounds since its founding, encompassing seed, early-stage, late-stage equity, and debt investments.[35] [36] The funding has supported rapid expansion, product development, and market entry, with valuations escalating from under $20 million in its initial seed round to $75 billion in its most recent raise. Key funding rounds are summarized below:| Date | Stage | Amount Raised | Post-Money Valuation | Lead Investors |
|---|---|---|---|---|
| April 1, 2015 | Seed | $3.55 million | $17.8 million | Index Ventures, Balderton Capital |
| April 25, 2018 | Series C | $470 million | $2.91 billion | DST Global |
| February 4, 2020 | Series D | $500 million | $5.5 billion | - |
| July 2, 2021 | Series E | $800 million | $33 billion | Tiger Global Management |
| October 2025 | Late-Stage | $3 billion | $75 billion | Coatue Management, Tiger Global |