One of London's biggest fintech unicorns is aiming to become Europe's most valuable fintech startup with an ambitious new funding round led by JPMorgan.
Revolut is looking to bring in a $1.5 billion fundraise from JPMorgan, having hired the bank to manage a deal for the challenger bank over the coming months, sources close to the fintech firm told Business Insider. That fundraise could take the form of a $500 million equity raise and a $1 billion convertible loan — which would give the startup a valuation of between $5 to $10 billion. The details of the planned funding round were first reported by Sky News.
Revolut and JPMorgan declined to comment.
Business Insider understands that any proposed deal is one amongst many potential sources of funding for the company, and that any deal is still in its early stages. Revolut raised a $250 million Series C last year.
The funding round is likely to pique the interest of existing Revolut investors, with one telling Business Insider they would likely try to get involved. Investors close to the startup also say that they believe Revolut has the potential to one day be worth $50 billion — a valuation the company is also said to be targeting in future.
Revolut, founded in 2015 by developer Vlad Yatsenko and former Lehman Brothers and Credit Suisse trader Nikolay Storonsky, already has around 6 million customers, and the company boasts that it has long waiting lists outside Europe. It is currently in the process of applying for a US banking license, has expanded into Europe, and more recently into Australia .
The London-based company allows users to spend money worldwide in 150 currencies at a real-time exchange rate, with no fees, through a debit card. CEO Storonsky has previously outlined his goal of seeing the bank reach 100 million customers in the next five years and break into North American and Pacific markets. Revolut is currently available in 32 countries and recently signed a deal with Visa, which plans to take the number to 56.
Previous Series C funding was led by DST Global, the investment vehicle of Russian billionaire Yuri Milner, who was an early investor of Facebook, Twitter, and Spotify, among others. Major European VCs like Index Ventures and Balderton Capital also participated in the $250 million round.
The startup has previously been forced to denyallegations of links to the Kremlin, questions about its compliance procedures, and its working culture in various outlets which has partly prompted a management shakeup in 2019.
Swedish payments company Klarna is currently Europe's most valuable fintech startup, valued at $5.5 billion after it announced a $460 million Series E round in August 2019 .