- Revolut, one of London's largest fintech unicorns, is looking to raise $1.5 billion from JPMorgan.
- The challenger bank is exploring the possibility of selling an equity stake alongside a convertible loan as it looks to fuel its expansion plans.
- The company has already raised more than $300 million from VCs to date since its founding in 2015.
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One of London's biggest fintech unicorns is hoping to become Europe's most valuable fintech startup with an ambitious new funding round led by JPMorgan.
Revolut is looking to bring in a $1.5 billion fundraise from JPMorgan, having hired the bank to manage a deal for the challenger bank over the coming months, sources close to the fintech firm told Business Insider. That fundraise could take the form of a $500 million equity raise and a $1 billion convertible loan — which would give the startup a valuation of between $5 billion and $10 billion. The details of the planned funding round were first reported by Sky News.
Revolut and JPMorgan declined to comment.
Business Insider understands that any proposed deal is one among many potential sources of funding for the company and that any deal is still in its early stages. Revolut raised a $250 million Series C last year.
The funding round is likely to pique the interest of existing Revolut investors, with one telling Business Insider they would likely try to get involved. Investors close to the startup also said they believe Revolut has the potential to one day be worth $50 billion — a valuation the company is also said to be targeting in future.
Revolut, founded in 2015 by the developer Vlad Yatsenko and the former Lehman Brothers and Credit Suisse trader Nikolay Storonsky, already has around 6 million customers, and the company boasts that it has long waiting lists outside Europe. It is in the process of applying for a US banking license and has expanded into Europe, as well as into Australia.
The London-based company allows users to spend money worldwide in 150 currencies at a real-time exchange rate, with no fees, through a debit card. CEO Storonsky has previously outlined his goal of seeing the bank reach 100 million customers in the next five years and break into North American and Pacific markets. Revolut is available in 32 countries and recently signed a deal with Visa, which plans to take the number to 56.
Previous Series C funding was led by DST Global, the investment vehicle of the Russian billionaire Yuri Milner, who was an early investor of Facebook, Twitter, and Spotify, among others. Major European venture-capital firms like Index Ventures and Balderton Capital also participated in the $250 million round.
The startup has previously denied allegations of links to the Kremlin, and it has addressed questions about its compliance procedures and its working culture in various outlets that partly prompted a management shakeup earlier this year.
The Swedish payments company Klarna is Europe's most valuable fintech startup, valued at $5.5 billion after it announced a $460 million Series E round in August.
The Revolut USA Prepaid Visa® and Prepaid Mastercard® are issued by Metropolitan Commercial Bank pursuant to a license from Visa U.S.A. Inc. for Visa cards, and Mastercard International for Mastercard cards, and may be used everywhere Visa or Mastercard are accepted. Banking services are provided by Metropolitan Commercial Bank, Member FDIC, and are subject to the terms of a Cardholder Agreement. “Metropolitan Commercial Bank” and “Metropolitan” are registered trademarks of Metropolitan Commercial Bank © 2014. A note from Metropolitan Commercial Bank: Funds in your Revolut Prepaid Card Account are held at an FDIC insured institution. Your funds will be held at or transferred to Metropolitan Commercial Bank, an FDIC-insured institution. While there, your funds are insured up to $250,000 by the FDIC in the event Metropolitan Commercial Bank fails if specific deposit insurance requirements are met and your card is registered. See fdic.gov/deposit/deposits/prepaid.html for details. FDIC insurance does not protect your funds in the event of Revolut’s failure or from the risk of theft or fraud. See Terms & Conditions for details. Revolut is a financial technology company. Banking services provided by Metropolitan Commercial Bank, Member FDIC.