On August 16, 2024, Revolut, the UK-based fintech giant, secured a $45 billion valuation in a secondary share sale. The valuation marks a significant leap from its previous $33 billion valuation secured in a funding round in 2021. The latest deal, which provides liquidity for employees holding stakes in the company, was led by major investors Coatue, D1 Capital Partners, and Tiger Global, the latter being an existing investor.
This impressive valuation comes on the heels of Revolut’s strong financial performance in 2023. The company reported revenues of $2.2 billion and a record profit before tax of $545 million, reflecting its rapid growth and solidifying its position as a leader in the fintech sector.
The secondary share sale also follows Revolut’s recent achievement of securing a UK banking license after a three-year process fraught with challenges, including compliance issues, delays in filing accounts, and the sheer scale of the company. With over 45 million customers worldwide, Revolut is now poised to expand its product offerings beyond e-money services to include loans, mortgages, and credit cards. This development positions the company as a formidable competitor to traditional banks.
Nik Storonsky, CEO of Revolut, expressed satisfaction with the deal, stating, “We’re delighted to provide the opportunity to our employees to realise the benefits of the company’s collective success.”
The timing of this valuation is particularly noteworthy as the UK government intensifies efforts to persuade Revolut to choose London over New York for its anticipated initial public offering (IPO). According to the Financial Times, City Minister Tulip Siddiq is scheduled to meet with Revolut in the autumn to discuss the potential London listing. Storonsky has previously hinted at a preference for listing on the Nasdaq, but the UK government’s push may sway the decision in favor of London.
Revolut’s remarkable growth trajectory and the recent $45 billion valuation underscore its growing influence in the global fintech landscape. As it continues to innovate and expand its services, the company’s future moves, including the potential IPO, will be closely watched by industry players and investors alike.
