SoftBank-Backed Fintech Giant Revolut Eyes Over $40 Billion Valuation in Employee Stock Sale: Report – Morgan Stanley (NYSE:MS), Lloyds Banking Group (NYSE:LYG)

In a move that could consolidate its status as Europe’s most valuable startup, RevolutionA UK-based fintech major is reportedly eyeing a valuation of more than $40 billion in an employee stock sale.

What happened: Revolut, which is backed by SoftBank Group Corp. SFTBY, is working with Morgan Stanley to sell about $500 million worth of existing shares, including those owned by employees, Financial Times reportedciting three people familiar with the plans.

The proposed valuation would represent a 21% increase over Revolut’s $33 billion valuation in its 2021 fundraising round. This would also put Revolut’s market capitalization on par with that of Lloyds Banking Group Plc. and higher than that of NatWest AND Société Générale SA.

Despite the challenging market for European fintech companies over the past two years, Revolut’s ambitious goal, if achieved, would be a remarkable feat. Other major fintechs such as Klarna have seen their valuations plummet, raising concerns about the stability of the sector.

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Revolut’s application for a UK banking license, crucial for the company to expand its lending and profits in its primary market, has been pending for more than three years. This, along with other problems, has led to uncertainty about the company’s future.

Revolut did not immediately respond Benzingarequest for comment.

Because matter: Revolut’s proposed valuation comes amid a series of strategic moves. Earlier this month, the company partnered with GTN TO launch bond trading for European clients. This move was seen as a significant step in Revolut’s mission to build an all-in-one investment platform.

However, Revolut’s journey has not been without its challenges. In May 2023, the company’s request for a The UK banking license was under scrutiny after its auditor, BDO, questioned its revenue numbers for 2021. This raised concerns about the accuracy of the company’s financial reporting.

Despite these challenges, Revolut has continued to expand its offering. In February 2023 the company launched cryptocurrency staking in the UK and the European Economic Area, allowing users to earn income on their crypto assets.

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This story was generated using Benzinga Neuro and modified by Kaustubh Bagalkote

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