London fintech giant Revolut recently announced that it has reached a valuation of $45 billion after an employee secondary share sale. With this, it is now Europe’s most valuable company, surpassing that of Klarna and Checkout.com. Before this share sale, the company was valued at $33 billion after raising investment in 2021.
As per the announcement, Coatue (which recently invested in Stability AI and Rippling), D1 Capital Partners, and existing investor Tiger Global, which invested in CRED, were among the investors who purchased shares from Revolut employees.
This share sale allows current employees to capitalise on their contribution to the company’s growth. Also, it will bring new and existing investors. This follows an increase in Revolut’s revenue to $2.2 billion in 2023.
Banking licence in the UK
This announcement from Revolut comes a month after the company received a banking licence in the UK from the Prudential Regulation Authority (PRA). This is a milestone for the fintech unicorn as it awaited this licence for three years. Notably, Revolut applied for a UK banking licence back in 2021. It already has a banking license in Lithuania, which gives it access to the European Union (EU), as well as Mexico.
The banking licence is a key step in accelerating the company’s growth as it moves the company on from its current status as an e-money firm, which operates between consumers and licensed banks. The UK licence will allow the fintech unicorn to hold customer deposits, opening the door to new income streams, since it can start funding own-branded loans and mortgages. However, it will face more stringent regulations and has to guarantee customer deposits up to £85,000.
This approval means that the bank is all set to become a fully-fledged bank in the UK, however the company claims that there are restrictions.
Plans ahead
Revolut is currently planning for its IPO in New York, according to the Financial Times. Reportedly, the UK’s new Labour government is in talks to persuade the British fintech giant into listing in London instead.
Nik Storonsky, CEO of Revolut, said: “We’re delighted to provide the opportunity to our employees to realise the benefits of the company’s collective success. It’s hard work, innovation, and dedication have driven us to become Europe’s most valuable private technology company. We’re also excited to partner with several new investors who share our vision as we continue our journey to redefine the banking landscape as we’ve known it.”
