This blended valuation approach—offering different share prices for new investors and sellers—has become a clever tactic for high-growth startups to maintain a lofty valuation while still providing liquidity to existing shareholders.

The move comes as Revolut is riding a wave of financial and operational success. The company, which began as a simple currency exchange app in 2015, now offers a full suite of banking, investment, and payments services to over 50 million users globally. In 2024 alone, it reported £3.1 billion in revenue, a 72% year-over-year increase, and £1 billion in pre-tax profit, more than doubling its previous year’s performance.

Beyond the numbers, Revolut’s global expansion ambitions are a key driver behind the funding. The company is aggressively pushing into the U.S. market, expanding its offerings beyond digital banking to include crypto trading, stock investments, and even payroll services for businesses. Revolut also recently secured a long-awaited U.K. banking license, giving it the green light to expand deposit-taking and lending activities in its home market.

The fintech’s planned funding round is set against a backdrop of renewed investor interest in financial technology, despite broader tech-sector turbulence. While market corrections and regulatory headwinds have cooled some of the exuberance seen during the pandemic-era fintech boom, Revolut’s stellar financials and robust growth pipeline appear to have reignited optimism among top-tier institutional investors.

Still, not everyone is entirely bullish. Some analysts caution that Revolut’s lofty valuation may be hard to justify long-term unless it successfully captures a dominant position in key markets like the U.S., where competition is fierce and regulatory frameworks are complex.

However, if the $1 billion raise goes through, it would represent one of the largest funding rounds ever for a European fintech—putting Revolut in the league of global heavyweights like Stripe and Ant Group.