Revolut has achieved a valuation of $45 billion through a secondary share sale involving both new and existing investors.
The deal was orchestrated to provide employees with liquidity for their stakes in the UK-based fintech giant, led by Coatue, D1 Capital Partners, and current investor Tiger Global.
This development follows reports that Revolut was collaborating with Morgan Stanley to sell approximately $500 million worth of existing shares. The new valuation marks a notable increase from the $33 billion valuation reached in an $800 million funding round back in 2021. This progress comes on the heels of a robust 2023, which saw the company generate revenues of $2.2 billion and achieve a record pre-tax profit of $545 million.
Additionally, this announcement follows Revolut’s recent acquisition of a UK banking license after three years of regulatory challenges, including compliance issues and delays in filing accounts. The business now claims over 45 million customers globally. With the banking license, Revolut will be able to expand its deposit base and offer products such as loans, mortgages, and credit cards, posing a significant challenge to traditional banking institutions.
Nik Storonsky, CEO of Revolut, expressed his enthusiasm, stating, “We’re delighted to provide the opportunity to our employees to realize the benefits of the company’s collective success.”
In related news, the new UK government is reportedly hoping to persuade Revolut to select London over New York for a potential initial public offering. According to the Financial Times, city minister Tulip Siddiq is planning a meeting with the company this autumn, though Storonsky has previously indicated a preference for a Nasdaq listing.