The club was established on September 2, 1997 as Vidima-Rakovski, but it was named as a predecessor of SC Rakovski, which was founded on December 19, 1922. Vidima-Rakovski have spent most of their history playing in the lower divisions of the Bulgarian football league system, until 2003, when the club earned promotion to the top division. The club's home ground is the Rakovski Stadium in Sevlievo, which has a capacity of 8,816 people. The club was dissolved due to financial troubles.
The current club was established by the municipality on June 4, 2015 after the dissolving of the previous top-flight PFC Vidima-Rakovski Sevlievo. The new club's name was shortened to FC Sevlievo. In the following weeks, the newly registered association bought the license of FC Era-1 and started participating in the 2015-16 V Group, with Milen Vankov being appointed as manager.
Up to five non-EU nationals can be registered and given a squad number for the first team in the First League, however only three can be used during a match day. Those non-EU nationals with European ancestry can claim citizenship from the nation their ancestors came from. If a player does not have European ancestry he can claim Bulgarian citizenship after playing in Bulgaria for five years.