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Revolut has solidified its position as Europe’s most valuable private technology company, achieving a $45 billion (£34.9 billion) valuation through an employee share sale. The sale, coordinated by Morgan Stanley, saw major investors such as Coatue, D1 Capital Partners, and Tiger Global purchase shares from Revolut’s staff. This new valuation marks a significant increase from the $33 billion (£25.6 billion) achieved in a 2021 funding round led by SoftBank and Tiger Global, despite a broader decline in fintech valuations driven by rising interest rates.
This valuation propels Revolut ahead of established UK banks like Lloyds, Barclays, and NatWest, making it the second most valuable bank in Europe, only behind HSBC, which is valued at £121.1 billion.
Revolut, however, did not disclose the exact value of the shares sold, though previous reports suggested discussions around selling approximately $500 million (£388 million) in existing equity.
Nik Storonsky, Revolut’s co-founder and CEO, expressed pride in the company’s achievements, attributing the success to the dedication and innovation of its employees. He also highlighted the company’s excitement about partnering with new investors to continue its journey of redefining the banking landscape.
Founded in 2015, Revolut recorded a pretax profit of £438 million in 2023, boosted by higher interest rates and the addition of nearly 12 million new retail customers that year. Its global user base has surpassed 45 million, with the company anticipating over 50 million users by the end of 2024. Additionally, Revolut experienced an 80% increase in annual revenue in the first half of 2024, alongside improved profitability.
Revolut’s recent UK banking licence, which was granted after a three-year regulatory process and comes with temporary restrictions, enables the company to directly hold deposits and expand its lending capabilities in the UK, where it has more than nine million customers. This development is also expected to enhance Revolut’s chances of securing a banking licence in the US.
Looking ahead, Revolut is reportedly considering a public listing, with a preference for the Nasdaq in New York over the London Stock Exchange. City minister Tulip Siddiq is expected to meet Revolut officials this autumn to discuss the company’s potential listing plans, among other topics.
Originally launched as a digital payments and money transfer app in the UK, Revolut has since expanded globally, offering a wide range of services, including cryptocurrency trading and an eSIM plan.
