Revolut's $500 million capital raise could help power its aggressive expansion goals - Business Insider

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Revolut's latest $500 million funding raise values it at $5.5 billion, and the the capital will likely be used to drive expansion

The fresh funding that the neobank has gained will likely be instrumental in paying costs — such as those for new tech infrastructure and staffing — associated with such rampant growth. However, as it pushes to expand at a breakneck pace, it will also need to keep an eye on the eventual goal of weaning itself off of the need for external capital by attaining sustainable profit.

One move Revolut has made toward sustainable growth is a new partnership with a UK legal technology firm to offer legal services to its 300,000 business clients. The neobank will work with UK-based startup Sparqa Legal to make the services available, per a press release sent to Business Insider Intelligence.

Through the partnership, Revolut Business clients can sign up for Sparqa's platform for free and receive a £50 credit towards Sparqa's services, which include customizable legal contracts, policies, and documents. Revolut competitor Starling Business banking can be a lucrative endeavor, so enhanced services for business clients could help Revolut's long-term prospects.

Starling seems well aware of this, as it has been steadily expanding its business marketplace and has taken other steps to polish its business offering, including an online

 

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