Revolut has reportedly been in talks to raise a new funding round from investors, in a transaction that aims to accelerate its global expansion.
Following this announcement, the UK-based institution is currently in discussions to raise about USD 1 billion of funding via newly issued shares and the sale of some existing stock.
In addition, the US investment firm Greenoaks is reportedly in talks to lead the private funding round, cautioning that details had not been finalised. Mubadala, the Abu Dhabi sovereign investor, is also in discussions to participate in the round, as it invested in Revolut for the first time last year, when the fintech conducted a sale of existing shares at a USD 45 billion valuation.
More information on Revolut’s new funding round
According to Financial Times, Revolut, Greenoaks, and Balderton declined to comment, while Mubadala did not immediately respond to a request for comment. At the same time, the initiative is aimed at giving Revolut the possibility to make inroads into the lucrative US landscape, as well as providing its application and suite of services to potential local users.
Recently, Italy’s competition authority opened a probe into some units of Revolut over alleged unfair practices in investment services and solutions. The company allegedly misled its customers and promoted investments in shares by emphasising the absence of commissions and failing to flag additional costs and limitations.
Earlier in the same month, Revolut expanded its investment portfolio in the UK, including stocks and shares ISAs for its users and clients. Through this initiative, Revolut aimed to offer these new ISAs, together with over 100 UK-listed exchange-traded funds, via its investment division, Revolut Trading. In addition, the company partnered with fund management companies, including Blackrock, Amundi, and Vanguard, for the ETFs, which were set to be available for the firm’s UK customers. Through this process, clients were given the possibility to begin investing from GBP 1 through Revolut’s app.
