Revolut employees are poised to share in a £390 million windfall as the financial technology company conducts a share sale that values the business at £35 billion.
This significant transaction underscores Revolut’s status as a leading player in the UK’s fintech sector, increasing its valuation from £26 billion during its last fundraising round three years ago.
The sale offers employees, who have been with the London-based company for at least a year, the chance to realise gains from the company’s swift growth. With more than 10,000 employees globally, including 1,300 in the UK, it remains unclear how many are participating in the sale, or if co-founders Nik Storonsky, CEO, and Vlad Yatsenko, CTO, are among those selling shares. Notably, new backers Coatue and D1 Capital Partners, alongside existing investor Tiger Global, are involved in this latest funding round.
Nik Storonsky expressed his enthusiasm, stating, “We’re delighted to provide our employees the opportunity to benefit from the company’s collective success.”
Revolut’s increased valuation is particularly noteworthy given the challenging environment in the broader fintech sector, where rising interest rates have pressured valuations. The company’s success contrasts sharply with competitors like Klarna, whose valuation plummeted from $45.6 billion in 2021 to $6.7 billion just a year later.
Founded in 2015 as a foreign exchange and money transfer service, Revolut has rapidly expanded into a comprehensive financial services provider, offering products ranging from share trading to savings accounts. With over 45 million customers worldwide, Revolut reported pre-tax profits of £437.8 million last year on revenues of £1.8 billion.
Revolut is set for further growth, having secured a UK banking licence last month after a three-year wait. This new licence will enable the company to lend in its home market and challenge established high street banks, while also supporting its international expansion plans.
Although Revolut is expected to pursue a stock market flotation, it is reportedly considering New York over London for its listing. This potential decision could be a setback for the City, with government officials reportedly planning to persuade Revolut to list in London.
