Revolut, the Britain-based digital banking and investing app is currently in discussion with global investors to push its expansion plans. As per the Reuters report, Revolut is planning to raise nearly $500 million as the company plans to expand its operations to Japan and the United States.
On Tuesday, November 12, during an interview with Reuters, Revolut CEO and co-founder Nikolay Storonsky said:
“We want to raise at least $500 million in direct equity and potentially, maybe at a later stage, up to $1 billion in convertible (debt)”.
Speaking about the company’s fundraising plans, he further added:
“We have done soft marketing with investors and we are continuing doing it, so hopefully in the next several months, we’ll get it done”.
Since its launch four years back in 2015, Revolut has made considerable progress with over 8 million customers as on date. In its hometown, the fintech app is popular for its money management tools, slicker apps and other attractive offers available on foreign exchange.
It was just last month that Revolut went live in Singapore by successfully starting its operations in the beta phase. For its Singaporean customers, Revolut is currently offering a basic free account, a Premium account and a Metal account.
Major Spending on Hiring
Revolut said that the majority of the funds raised shall be spent towards hiring new talent and expanding its global team. Currently, the fintech firm employees 1800 people and plans to expand its team to 5000 people by the year-end.
Storonsky said that the company is quite aggressive on hiring and that 60 percent of his time is currently devoted to hiring. The company is currently hiring across different talent including data scientists, tech developers, compliance experts, support staff, and other senior executives for different management positions.
The Revolut CEO added that they are continuing their talks with private equity investors and growth funds who can pump a minimum of $50-$100 million in their company.
Storonsky said that the funding giants and venture capital companies have turned cautious in selecting start-ups.
“There’s still demand for good healthy businesses but investors are now much more focused on profitability and unit economics compared to a year or two years ago when it was all about growth and market domination,” added he.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.