Fintech
$40B Valuation Pushes Revolut CEO to Sell Up to ‘Hundreds of Millions of Dollars’ of Shares
Revolut founder and CEO Nik Storonsky is planning to sell “tens or even hundreds of millions of dollars” of his stake in the fintech in a secondary share sale in the coming weeks, Sky News has reported.
While the exact amount of expected dilution of his stake remains unknown, the report noted that it will depend on the valuation the company can attract. Storonsky’s exact stake in the fintech is also unknown.
Valuation of $40 billion
According to another report from Sky News, the UK-based fintech has hired Morgan Stanley to arrange a secondary sales round and is aiming for a valuation of $40 billion. In its previous funding round in 2021, the company was valued at $33 billion, making it the largest fintech in Europe. Now, with its new expected valuation, it would even eclipse the market capitalization of banks such as Barclays, NatWest, and Deutsche Bank.
However, the British fintech will not raise any proceeds from the upcoming sale. Instead, it will offer employees the opportunity to sell their stake to new investors.
Record numbers
Revolut was founded in 2015 as a challenger bank and makes money from payments, subscriptions and customers trading stocks and cryptocurrencies. The fintech has recently expanded its offerings to include a range of trading instruments, including contracts for difference and bonds with third-party integrations.
The platform has over 40 million customers worldwide, a third of which are from the UK. Its competitors, Monzo and Starling, operate only in the UK and have less than 10 million customers each. In Europe, Revolut operates under a Lithuanian banking license and has obtained a similar license in Mexico. It has also received a payments license in India.
Meanwhile, the company Revenues rose 95 per cent to £1.8bn in 2023, while it made a pre-tax profit of £438 million. However, it is still waiting to receive a banking license in the UK, for which it applied in 2021.
Revolut founder and CEO Nik Storonsky is planning to sell “tens or even hundreds of millions of dollars” of his stake in the fintech in a secondary share sale in the coming weeks, Sky News has reported.
While the exact amount of expected dilution of his stake remains unknown, the report noted that it will depend on the valuation the company can attract. Storonsky’s exact stake in the fintech is also unknown.
Valuation of $40 billion
According to another report from Sky News, the UK-based fintech has hired Morgan Stanley to arrange a secondary sales round and is aiming for a valuation of $40 billion. In its previous funding round in 2021, the company was valued at $33 billion, making it the largest fintech in Europe. Now, with its new expected valuation, it would even eclipse the market capitalization of banks such as Barclays, NatWest, and Deutsche Bank.
However, the British fintech will not raise any proceeds from the upcoming sale. Instead, it will offer employees the opportunity to sell their stake to new investors.
Record numbers
Revolut was founded in 2015 as a challenger bank and makes money from payments, subscriptions and customers trading stocks and cryptocurrencies. The fintech has recently expanded its offerings to include a range of trading instruments, including contracts for difference and bonds with third-party integrations.
The platform has over 40 million customers worldwide, a third of which are from the UK. Its competitors, Monzo and Starling, operate only in the UK and have less than 10 million customers each. In Europe, Revolut operates under a Lithuanian banking license and has obtained a similar license in Mexico. It has also received a payments license in India.
Meanwhile, the company Revenues rose 95 per cent to £1.8bn in 2023, while it made a pre-tax profit of £438 million. However, it is still waiting to receive a banking license in the UK, for which it applied in 2021.