Revolut hires JP Morgan to raise $1.5bn

Digital payments firm Revolut is looking to raise $1.5bn in order to join ‘FinTech elite’, and has hired JP Morgan to help it sell new shares and a convertible loan.

Nik Storonsky of Revolut

Nik Storonsky, founder & CEO of Revolut

According to Sky News, JP Morgan will help Revolut with arranging a $500 equity-raise and the issuance of a $1bn convertible loan as part of a bid to become the most valuable fintech player in Europe.

In order to reach this level, Nik Storonsky, the founder and CEO of Revolut, would target a valuation from the capital-raising of between $5bn and $10bn, sources told Sky News.

Furthermore, the loan would be raised on the basis that it would convert into shares if the company received a US license – and if the full amount is secured, Revolut will have raised almost $2bn since its launch five years ago.

The FinTech is planning to unveil former veteran management executive Martin Gilbert as its new chairman and former Goldman Sachs Europe boss Michael Sherwood as a non-executive director. These are expected to be announced before further details about the fundraising are disclosed.

Recently, Revolut revealed an almost 5x growth in its revenue at £58.2m in 2018 as against £12.8m in the previous year, as well as a partnership with Visa which will expand its operations to 24 new markets.

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