Revolut commits USD13b to expansion, explores buying US bank
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The news: UK fintech Revolut on Tuesday said it plans to expand to over 30 new geographies by 2030, which will see the fintech plough USD13 billion ($19.7 billion) into its expansion as it also works to attain 100 million users.
The numbers: The USD13 billion investment includes USD500 million in previously-announced spending in the US and a USD1.2 billion commitment to its Western Europe hub in France.
While Revolut declined to specify where the remaining USD7.3 billion would be invested, a spokesperson told Bloomberg that the money would go toward expanding the firm’s global network of banks, recruitment and other operational upgrades.
As of today, Revolut has 65 million customers worldwide, with 12 million of those in the UK.
The company aims to attract 100 million customers by mid-2027, as well as aiming to enter more than 30 new markets by 2030.
Revolut is currently seeking a USD75 billion valuation in a secondary share sale.
The context: Announced at the opening of its new global headquarters in Canary Wharf in London on Tuesday, Revolut said that the USD13 billion will be deployed over the next five years and create over 10,000 new roles globally.
The company noted that the investments will also drive further growth in European markets as well as launches in new markets across Latin America, APAC, and the Middle East.
After the opening, Revolut's US CEO Sid Jajodia told Reuters that the fintech is "actively looking" at whether to acquire a US bank or to apply for its own banking licence there. A banking licence would significantly assist the fintech’s jump into the US market.
CEO Nik Storonsky said his top priority was to get a UK banking licence - a process running for several years - to transfer its 12 million customers into the new bank and "offer them credit" products. Executives say they hope to obtain the final licence this year.
