Business
Revolut employees enjoy a £390m windfall as the fintech giant’s valuation reaches £35bn
Revolut employees are set to share in a £390m windfall as the financial technology company carries out a share sale that values the company at £35bn.
This significant transaction underlines Revolut’s status as a leading player in the UK fintech sector, with its valuation rising from £26 billion during its last fundraising round three years ago.
The sale offers employees who have been with the London company for at least a year the opportunity to capitalize on the company’s rapid growth. With more than 10,000 employees worldwide, including 1,300 in Britain, it remains unclear how many are participating in the sale, and whether co-founders Nik Storonsky, CEO, and Vlad Yatsenko, CTO, will be among those selling shares. New financiers Coatue and D1 Capital Partners, in addition to existing investor Tiger Global, are involved in this latest financing round.
Nik Storonsky expressed his enthusiasm, saying: “We are pleased to offer our employees the opportunity to benefit from the company’s collective success.”
Revolut’s increased valuation is particularly notable given the challenging environment in the wider fintech sector, where rising interest rates have put pressure on valuations. The company’s success stands in stark contrast to competitors like Klarna, whose valuation plummeted from $45.6 billion in 2021 to $6.7 billion just a year later.
Revolut was founded in 2015 as a currency and money transfer service and has quickly grown into a comprehensive financial services provider, offering products ranging from stock trading to savings accounts. With more than 45 million customers worldwide, Revolut reported a pre-tax profit of £437.8 million on a turnover of £1.8 billion last year.
Revolut is poised for further growth after obtaining a UK banking license last month after a three-year waiting period. This new license will allow the company to lend in its home market and challenge established major banks, while also supporting its international expansion plans.
Although Revolut is expected to pursue an IPO, it is reportedly considering New York over London for its listing. This potential decision could be a setback for the city, as government officials are reportedly planning to convince Revolut to list in London.
