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Summary
- UK’s leading fintech company, Revolut, has entered the travel industry with its new ‘Stays’ feature.
- Recently, its valuation has touched £24 billion, making it the second largest fintech in Europe.
Following the fresh round of funding which pushed its valuation to £24 billion, London-based fintech giant Revolut recently launched a new feature on its app which is designed for helping the users to book travel accommodations. This Stays feature on its platform and will enable the users to book accommodations and get a 10% cashback on all bookings made via the same fintech app, thus helping the users to carry out financial management as well as spend their money smartly while travelling worldwide. This is the first non-financial or insurance product by the fintech unicorn.
Earlier this week, the London-based neobank has become the most valuable British private fintech company ever on record after raising around £579 million (US $800m) in a new fundraising led by SoftBank’s Vision Fund and Tiger Global management. At present, the company has 16 million users across the world.
The new superfeature
In the past, Revolut has been a fintech company and its entry in the travel industry has been a big surprise, but it appears to be the perfect time for the company to enter this industry as the world is on the path of recovery amid the global pandemic, and the travel industry will probably open up and improve again after being hit hard by the lockdowns and restrictions across the globe.
With its new Stays feature, Revolut aims to become a ‘super app’ offering a wide range of services via just one interface. The Stays feature will enable the users to book travel accommodation as well as manage their finances. Also, the instant 10% cashback on bookings made via the app will save £69 per year for an average customer. Around £70 million will be given out by Revolut to the UK customers who are making the booking via its app, making it the biggest giveaway of the company. It is anticipated that the Stays feature will expand further to help the users in booking flight tickets as well as offering them other such services related to travel, such as car hire. At present, the Stays feature has been launched only in the UK, but in the coming months, it will expand into other parts of Europe and US as well.
New travel data has also been released by the company supports its new venture. According to it, 72% of Brits are willing to travel abroad as and when they are able to, while only 6% of them have no plans at all to travel abroad. As the world begins to heal, the travel fever is being experienced across Europe, with 72% of Spanish people and 84% of French people willing to travel abroad regardless of restrictions on travel. The additional information from data also unveiled that around a half (48%) of the UK respondents prefer to put up in the hotels which are abiding by the Covid-19 regulations, and around a quarter (24%) of them prefer to stay at a private apartment of self-contained villa on rent.
About Revolut
Revolut’s valuation has touched £24 billion in a fresh round of funding, making it the most valuable fintech firm in the UK, and the second largest fintech in Europe. The neobank has become the most valuable private fintech company in the UK on record after raising around £579 million. The company is all set to roll out its IPO soon.
Although it is not publicly listed on the stock market, the significant increase in its valuation has paved a clear path for its listing. The exceptional valuation shows that the six-year-old company is worth more than three- quarters of the members of the FTSE 100 stock market Index.
Founded in 2015, Revolut is a growing company and has a substantial area of operation, covering over 34 countries, and in the past few years expanding its global presence by pushing into markets including Australia, US, and Japan. Having more than 16 million customers, the startup has also entered in the crypto-currency market and offering crypto trading services on its app, which will further enhance its success according to analysts.
Summing up
Entering the travel sector by taking a giant leap of faith, Revolut aims to become the go-to app for travel related services in addition to financial management services. As the world is cautiously opening up, and people are ready to travel, Revolut is all set to offer them a variety of options on its platform, ranging from bargain B&Bs to luxury lodges. Also, the company won’t charge any booking fees, although the accommodation providers may charge it.
