Revolut is today one of the best-known companies in the Fintech sector. Previously a small online currency exchange platform, in less than 10 years this company has become a behemoth of online financial and banking services worldwide.

In March 2020, this British fintech managed to raise $800 million, making it the world's third unicorn (start-up valued at over $1 billion).

But what do you need to know about Revolut? What is its history? What new challenges does it face? Find out all about this company's rise to power!

Revolut: from foreign exchange platform to unicorn

In recent years, Revolut has become the UK's leading fintech. Having achieved unicorn status in record time (2.5 years), the neobank has recently raised the bar once again with an $800 million in fundraising.. From low-cost international transfers to multi-currency accounts and gift cards, here's how Revolut has made its mark.

Revolut: what is it?

Revolut is a London-based fintech offering online banking services.. It is an innovative neobank (bank whose services can be accessed online) that stands out for its services focused on financial technology. Revolut's platform offers currency exchange services at real-time market rates, debit and credit cards, and online banking accounts.

Its history

Revolut was founded in 2015 in London by Nikolay Storonsky and Vlad Yatsenko. The two founders were inspired to create Revolut after becoming frustrated with the high bank charges associated with foreign currency when traveling on business. They began developing an online platform that would enable users to convert currencies at market rates in real time, with no hidden fees.

In 2015, they launched a equity crowdfunding campaign to raise funds to develop their idea. The campaign was a success, and they managed to raise almost 1.5 million pounds sterling.

At July 2015they launched the first version of the Revolutwhich allowed users to convert currencies, transfer money abroad and pay with a debit card.

Since then, Revolut has continued to evolve, offering banking, credit card, cryptocurrency, insurance and other services. It has become one of Europe's hottest fintechs, raising over $1 billion in funding. It has even begun to expand in the United States and elsewhere.

What advantages does Revolut offer its users?

If the Revolut platform now has millions of users worldwide, it's partly due to the advantages it offers.

• Exchange currencies at market rates in real time: users can convert currencies at market rates with no hidden fees.
• Money transfers abroad: the platform lets you you to send money abroad without high transaction fees.
• Debit and credit cards: you can use Revolut debit and credit cards debit and credit cards for online and in-store payments.
• Budgeting tools: Revolut offers tools to help users manage their budgets and track their spending.
• Cryptocurrencies: you can buy, sell and store cryptocurrencies on the platform. on the platform.
• Travel insurance: some Revolut subscriptions include travel insurance to cover users when they travel.
• Availability: Revolut is available in many countriesso it can be used for international transactions.
• Security: this bank uses advanced security measures to protect its users' information and funds.

How did Revolut become a unicorn in such a short space of time?

Several factors explain this bank's meteoric rise.

A series of financing packages for rapid growth

Revolut has become a unicorn thanks to its serial financing. In October 2018it raised $250 million in a Series C fundraising, which valued the company at $1.7 billion.

In September 2019Revolut raised another 500 million in Series D, bringing its valuation to over $5 billion. Investors in this funding round included venture capital firms and banks.

These fundraisings have enabled Revolut to finance its international expansion and develop new products and services, such as credit cards, cryptocurrency deposits and investment services. It has also enabled Revolut to attract talent and continue to grow.

In 2020Revolut continued to raise funds, reaching a total of 5.5 billionThis made Revolut the first European fintech start-up to reach unicorn status in 2020.

An innovative business model

Revolut's innovative business model Revolut's innovative business model is based on monthly subscriptions that offer advanced banking and payment servicessuch as money transfers abroad at attractive exchange rates, free money withdrawals abroad and metal debit cards.

Users can take out different levels of subscription, giving them access to additional features. This model allows the company to earn money by offering additional services to users who pay for higher subscriptions, rather than relying solely on traditional banking fees.

The quality of partners and investors

Revolut is backed by a number of important partners and investors. Revolut's investors include venture capital firms such asIndex Ventures, Ribbit Capitaland DST Global. The company's partners include technology companies such as AWS, and payment companies including Visa, MasterCard or TransferWise. Revolut also has partnerships with financial services companies such as PwC, and banking services companies like Bank of Ireland.

In short, Revolut has become a unicorn thanks to its rapid growth, its innovative business model, the quality of its team and the confidence of its investors.

What next?

While it is difficult to predict exactly how Revolut will evolve in the future, the company has already announced ambitious plans to expand its services and reach. One of Revolut's main initiatives is to become a major player in online banking. To achieve this, the company aims to 100 million users by 2025..

Other projects includegeographic expansionRevolut has already launched its services in various European countries and intends to continue extending its reach in Europe and the rest of the world. Finally, Revolut is also in the process of developing online products and services for businesses to help to help them manage their finances. These include the introduction of TPEs (electronic payment terminals) to make it easier for professionals to read their bank cards.

Revolut: key information

The workforce

By 2022Revolut will have approximately 2,000 employees around the world. Since the recent health crisis, more of these employees have been teleworking.

Sales figures

In 2019the Revolut neobank posted sales of 162.7 million (approximately 181 million euros).

Going public

Despite record fundraising, Revolut is not currently listed on the stock exchange through an initial public offering (IPO). In fact, the bank's current priority is to expand. It is looking to develop new products and implement marketing strategies in the countries where it is expanding, such as the United States, Japan and Australia.

Nevertheless, the the possibility of a quotation is not omitted. As Mikko Salovaara, the Group's CFO, explains. "We believe that we will eventually become a listed company, but we have no immediate plans to go public.

Business and strategic objectives

The company aims to simplify financial transactions for consumers and businesses by using technology to automate and optimize processes. In addition, Revolut aims to become the platform of choice for users looking for an alternative to traditional banks by offering more competitive exchange rates and lower fees.

Scalability

When platforms like Revolut experience such rapid growth, there are usually problems keeping up with demand. Fortunately, the the platform has hired teams of customer service agents to provide fast, efficient support to customers. Similarly, investments have been made in the development of the Rita bot to quickly resolve minor customer concerns. In addition, Revolut's revolutionary impact on the banking sector is sure to be far-reaching. Revolut is a major player in the banking sector, having raised almost a billion euros in less than a year, and has rapidly gone from start-up to global unicorn.

The technology that enables it to stand out and compete with medium-sized and small banks is highly advanced. It offers a useful, customizable experience that is rapidly gaining in popularity with European consumers. It is therefore likely that, sooner or later, it will be able to make its mark on the traditional banking market in Europe, and even worldwide.

Mantra/Citation CEO

Simply Revolutionary (simply revolutionary).