Revolut, a UK-based fintech company, is in discussions to secure a new funding round that may value the firm at US$65 billion, according to a report from the Financial Times.

The company aims to raise about US$1 billion through new and existing shares.

The round is reportedly led by US investment firm Greenoaks, though final terms have not been confirmed.

Revolut was last valued at US$45 billion in 2024 and recently posted US$1 billion in profit with a 72% revenue increase.

The company now serves over 50 million users across over 30 countries and holds UK banking licenses.

Revolut declined to comment on the current funding discussions.

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🔗 Source: TechCrunch

🧠 Food for thought

1️⃣ Revolut’s valuation trajectory outpaces fintech sector averages

Revolut’s potential $65 billion valuation would represent a remarkable 97% increase from its $33 billion valuation in July 2021, significantly outperforming broader fintech sector growth rates1.

While the overall fintech sector shows strong 40% revenue growth and 39% profit growth, Revolut has achieved 95% revenue growth in 2023 alone, reaching $2.2 billion with $545 million in profit2.

This acceleration is particularly noteworthy as fintech customer growth is stabilizing industry-wide at 37% (down from 55% in previous periods). Revolut, however, added 12 million new customers in 2023, continuing its strong user growth trajectory32.

The company’s consistent performance progression—from its 2015 founding to reaching 50 million customers in 2024—demonstrates how strong execution can create outlier valuations even as the broader sector matures4.

If the new funding round completes as reported, Revolut’s valuation-to-revenue multiple would expand to approximately 29.5x (based on 2023 revenue), positioning it at the higher end of fintech valuation ranges where some startups raise at 30x while others struggle to justify 10x5.

2️⃣ Product diversification drives valuation premium beyond typical neobanks

Revolut’s evolution from a currency exchange app in 2015 to a comprehensive financial platform spanning banking, trading, and cryptocurrency services explains its premium valuation compared to pure-play neobanks6.

The company’s expansion into 38 countries with regulatory approval, including securing a UK banking license in 2023, creates substantial barriers to entry that justify higher multiples compared to regional competitors74.

Revolut’s strategy of building a “financial superapp” aligns with emerging industry trends, as embedded finance is projected to grow at 30% CAGR, reaching $384.8 billion by 20298.

The company’s consistent product expansion mirrors successful Asian super apps but in Western markets, allowing it to generate revenue through multiple streams including subscription services, transaction fees, and foreign exchange services6.

This diversified business model has enabled Revolut to achieve profitability for three consecutive years, with profit before tax of $545 million in 2023, making its $65 billion valuation more defensible than pre-profit unicorns2.

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