Revolut eyes SoftBank investment at potential $30B valuation

Revolut representatives discussed potential investments that would come from a separate SoftBank fund in the past, according to Sky News

British banking and payments app Revolut is in “detailed” talks with SoftBank that contemplate an investment valuing the FinTech company at over $30 billion, Sky News reports.

SoftBank’s Vision Fund 2 is among several investors invited by Revolut to propose investments of between $750 million and $1 billion, the news outlet reported, citing unidentified industry sources.

Sky News reported that Revolut representatives discussed potential investments that would come from a separate SoftBank fund in the past, but that those talks did not lead to any deals.

According to the news outlet, the notion of a deal valuing Revolut at more than $30 billion comes amid a climate in which many investors were expecting the next infusion of capital would put the company’s worth at between $10 billion and $15 billion.

At the time of an investment from U.S. funds TCV and TSG Consumer Partners in 2020, Revolut was valued at $5.5 billion.

Revolut is based in the UK but has not completed the process of obtaining a license to accept deposits there. Nevertheless, the fintech has a presence in 35 countries and has over 15 million customers.

In June, Revolut reported a 57 percent year-over-year (YOY) rise in adjusted revenue and a 49 percent rise in gross margin for the fiscal year that ended at the end of calendar 2020.

In a prepared statement issued in conjunction with the earnings, company founder and Chief Executive Nikolay Storonsky said, as the extraordinary circumstances of 2020 drove the trend towards digital financial management, we continued to innovate for customers to make their financial lives easier and accelerate daily use.

He said: We launched 24 new retail and business products, expanded into the U.S., Japan and Australia and launched banking services in Lithuania, all while significantly improving our profitability. We began 2021 with a more resilient and productive business that will enhance our trajectory towards rapid growth.