Revolut, foreign currency exchange service has raised $2.3 million in a funding round led by Balderton Capital. It is also backed by SeedCamp which is Europe’s largest pre-seed acceleration fund. This investment adds Revolut to the list of successful fintech companies like Zopa, Crowdcube and Nutmeg.
The startup Revolut functions with the aim to eliminate unwarranted fees levied at consumers and those that end up making customer paying penalties. The free mobile app and prepaid MasterCard are compatible to convert money into multiple currencies on the very best available rates. Studies by the company shows that every year Britons spend around $1.67 billion abroad or send money abroad.
Nikolay Storonsky, founder and CEO of the startup said, “Revolut has an ambition to change the way money is transacted, sent and spent around the world. We are proud and delighted to introduce the world’s best-value digital currency exchange service. The app and card are intuitive to use, free of all and offer customers the peace of mind that. With Revolut, you can use your money across borders at unbeatable value.”
Using their service is quite simple. The customer first downloads the free Revolut app. In the app he sets up an account and requests for free multi-currency MasterCard in few seconds. The company does not charge any amount for delivering the card. The card can be used anywhere in the world with no fees for the first twelve months. It can used to withdraw cash and to swipe in any store. The card allows the money to be converted in any of the 23 currencies listed, without the transfer charges, for the customers to spend and send using the best available rates.
Daniel Waterhouse, partner at Balderton, said, ” As you probably know, we have a long history of investing in the fintech category and a very deep understanding of it. We spend a lot of time looking at companies in all sorts of areas and clearly the foreign currency market is interesting as consumers have been paying pretty ridiculous fees and costs on currency conversion in the past.” He also added, “We are delighted to invest in Revolut as they have an exceptionally bright team and they are solving a major pain-point that the banks are ignored and they are doing it with an extremely elegant, mobile-first user-interface.”