Revolut is the British company, the offering service which helps to exchange one currency on another without banking fees, converting means at an average rate at the market. At the time of writing of a note the project supports 23 world currencies.
Entry into the American market
At the end of March, 2020 the digital bank entered with the Russian roots Revolut on the American market, having started applications in 50 states. The American Metropolitan Commercial Bank which provided the financial infrastructure for deployment of the platform became the partner of the company.
In USA offices Revolut were located in New York and San Francisco, but itself financial that- the platform will be available everywhere on operating systems iOS and Android. Since March 24 users from the USA will be able to create an account in the application and to issue the normal or virtual debit card Revolut. As soon as their personal data are approved, they will obtain new data of an account which can be used for implementation of payments and introduction of salary. Applications were submitted already by several tens of thousands of people.
So far the functionality available to the American users of Revolut is limited in comparison with Europeans. Expansion of options, including a possibility of acquisition of cryptocurrencies and investments into the stock market is in the future allowed. However the American users can already get paid for two days ahead if they share bank details of Revolut with the employer. The low commission when translating from one currency in another became one more of available advantages of the application. Clients from the USA will also receive notifications on expenses and offers on the help in budget making.
Thanks to the financial technical-platform clients from the USA will be able to spend and transfer money at an interbank exchange rate worldwide. Users can also remove cash in more than 55,000 ATMs in the USA and worldwide without the commissions from the premium account of Revolut or with the set commission when using a standard account of Revolut.
Revolut is the most expensive British financial technical-startup
At the end of February, 2020 the digital bank Revolut became the most expensive British financial technical-startup. The company was estimated at $5.5 billion according to the results of an investment round.
The Monzo financial technical-company whose market value in 2019 was 2 billion pounds sterling was a former champion. Also in due time service for financing of small business of OakNorth cost 2.2 billion pounds sterling. Analysts from the CB Insights company specializing in market research of the venture funding call Revolut the most expensive European financial technical-startup along with Klarna company.
$500 million which were attracted by Revolut in February, 2020 became the biggest for the European financial technical-market. The British authorities welcomed the investment attraction as a vote of confidence to the financial sector against the background of the concerns connected with Brexit.
Taking into account this round the total amount of the funds raised by Revolut reached $836 million. The company intends to use these investments for development of new banking products and expansion of banking activities in Europe.
| ||Moving further, we will be concentrated on deployment of banking activity in Europe and also increase in number of the people using Revolut as the daily account, and aspiration to profitability — the founder of Revolut Nikolay Storonsky said.|| |
As of February 25, 2020 Revolut has 10 million clients worldwide, 23 offices and 2000 employees, a half of whom work in Krakow (Poland).
According to the The Guardian edition, in the press there went information on high routine of the personnel to Revolut which was connected with a non-payment of work and too high tasks which are set by the management. The representative of Revolut in a conversation with Wired said that the company culture "changes also quickly, as well as our business", and the routine of the personnel is less than 3%.
Attraction of $0.5 billion and business valuation in $4.6 billion
On February 14, 2020 it became known of the closed round of financing according to the results of which Revolut attracted about $500 million investments and was estimated at $4.6 billion that nearly three times more than the cost of the company in 2018.
According to The Telegraph with reference to the materials sent to the regulator, the main investor according to the results of the financial transaction became Technology Crossover Ventures fund. According to the edition, he could invest $150 million. The Technology Crossover Ventures company is known that it invested in Airbnb and Spotify.
Revolut also received money from the Bond Capital foundation which is set up by the venture investor of Mary Meeker. One of the existing investors of a financial technical-startup — Ribbit Capital — also took part in a round, follows from data of Pitchbook.
According to The Telegraph, the Revolut company attracted investments through sale of new stocks and also obtained the new credit in the amount of $1 billion. The newspaper writes that the startup is unprofitable, however the operating officer Richard Davies in February, 2020 said that the company can "very quickly" become profitable.
According to sources Forbes, a share of the founder of Revolut Nikolay Storonsky in the company makes 30% on the basis of what the magazine calls the businessman the new dollar billionaire with a status in $1.65 billion.
Forbes estimated Storonsky's fortune in $500 million earlier. In the rating of the 200 Bogateyshikh Businessmenov Rossii magazine it was delivered on the 199th place. His father, Nikolay Mironovich Storonsky is the top manager of Gazprom, since December, 2019 years holds a position of the CEO of JSC Gazprom promgaz. Storonsky Jr. rejected charges in connection with the Russian state structures.
Forbes source in the venture market says that Nikolay Storonsky looked for financing at the end of 2019 and as a result received several offers from venture funds.
2019: Entry into the market of Singapore
On October 23, 2019 Revolut announced official entry into the market in Singapore where before the British financial technical-company with the Russian roots (her cofounder is the former Credit Suiss trader in London Nikolay Storonsky) worked in the test mode. During experimental work in the country the startup could attract 30 thousand people who can open the account of Revolut from phone now, receive the card and manage money through the application.
| ||The average resident of Singapore travels about seven times a year, and at the same time they transfer up to $7 billion abroad. Mostly, it is ordinary, hardworking people who do not know that their financial services providers charge from them the fees at the rate to 5% — the head of department of Revolut in the Pacific Rim Eddie Li (Eddie Lee) said.|| |
The Singapore users of Revolut can exchange 14 different currencies among which — the Australian, American and Singapore dollars in the application. It is going to add 14 more currencies, including Indian rupees and Malaysian ringgits.
Earlier Revolut selected Singapore as the center of development of the business from the Pacific Rim. By October, 2019 in local office of the company 20 people work. It is going to treble number of staff for several months.
Entry into the Singapore market in Revolut called the international expansion "break for cross-border payments".
Revolut together with MasterCard payment system intend to issue debit cards in the territory of the USA by the end of 2019. Within cooperation of MasterCard will issue about 50% of the existing and future cards of Revolut which will be intended for the European market (there the company has 7 million clients).