Revolut, a leading fintech company based in London, has taken a significant step by signing agreements with notable technology investors to enable liquidity for its employees through a secondary share sale. This move implies a valuation of $45 billion (€40.9 billion). The transaction aims to reward current employees for their contributions while attracting a diverse range of new and existing investors.
Revolut’s recent valuation reflects its rapid growth and consistent financial performance. Previously, the company’s valuation hovered around $33 billion. Furthermore, historical reports indicated that Revolut’s revenue surpassed $1 billion in 2022. These figures demonstrate the company’s accelerating momentum and substantial market presence. By 2023, Revolut’s revenue jumped to $2.2 billion, marking a 95% year-over-year increase and solidifying its status as a key player in the fintech sector.
Significant Investor Support
The secondary share sale was led by Coatue, D1 Capital Partners, and Tiger Global. This transaction not only provides liquidity to employees but also strengthens Revolut’s investor base. The involvement of these major investors underscores confidence in Revolut’s business model and future prospects. Nik Storonsky, CEO of Revolut, expressed appreciation for the employees’ dedication and welcomed the new investors.
“We’re delighted to provide the opportunity to our employees to realise the benefits of the company’s collective success. It’s their hard work, innovation, and dedication that have driven us to become the most valuable private technology company in Europe. We’re also excited to partner with several new investors who share our vision as we continue our journey to redefine the banking landscape as we’ve known it.”
Financial Milestones and New Ventures
In 2023, Revolut reported a significant revenue of $2.2 billion (€2 billion), which represented a 95% year-over-year increase. The company also achieved a record profit before tax of $545 million (€495 million). The first half of 2024 saw an annual revenue increase exceeding 80%, coupled with enhanced profitability. These financial milestones illustrate Revolut’s robust growth trajectory.
Furthermore, Revolut has recently obtained a banking license in Mexico and a UK banking licence with restrictions in July. The company also launched several new products, including the RevPoints Loyalty Programme, eSIMs, and Revolut X crypto exchange. Philippe Laffont, Founder and Portfolio Manager at Coatue, praised Revolut’s mission and its capacity to scale across global markets.
“We have a high level of conviction in Revolut’s mission to democratize access to financial services globally. Revolut’s proven ability to scale across dozens of markets is a testament to the team’s commitment to product velocity, financial inclusion, and financial innovation. Under Nik and his team’s leadership, Revolut has navigated the complexities of the financial services landscape to deliver an impressive product suite that meets the needs of its rapidly growing customer base. We look forward to supporting Revolut as it continues to help transform the global banking industry.”
Revolut’s strategic moves and financial achievements underscore its continuous evolution in the fintech industry. The secondary share sale not only rewards its dedicated employees but also brings in significant investor support. This development, along with obtaining new banking licenses and launching innovative products, positions Revolut for further growth. By maintaining a strong focus on financial inclusion and innovation, Revolut remains a key player in the global fintech landscape, driving substantial value for its stakeholders.
