Revolut Eyes $40 Billion Valuation Via Share Sale
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According to reports, Revolut is striving to become the highest-valued startup in Europe, targeting a $40 billion valuation.
If the company achieved its goals, it would exceed the Market value of Société Générale and NatWest and be at the same level as Lloyds Banking Group.
The Firm’s Value Was Lowered To $25.7 Billion After A Review By An Investor
Insiders familiar with the plans revealed that the fintech is collaborating with Morgan Stanley to offload around $500 million worth of current shares, including those owned by employees, to achieve this valuation.
This arrived after an investor reassessment earlier this year, which brought Revolut’s valuation to $25.7 billion, lower than its 2021 valuation of $33 billion.
The startup needs clarification regarding its UK banking permit application, which it applied for three years ago.
Klarna, another renowned fintech based in Stockholm, saw a drop in its valuation, crashing from $46bn to $6.7bn in a 2022 capital raising. Several VC investors have since reduced their shares in Revolut.
A banking permit is essential for the fintech to increase loans and earnings in its primary market. However, regulators have held up the license as Revolut was hit by challenges, including caution from auditors about the inability to confirm 2021 revenue figures. The firm fell to a loss in its most recent postponed 2022 results due to the waning boom in crypto trading that had previously increased profits.
Increasing costs counterbalanced the gains from boosted customer deposits and increased rates. Revolut was established by Vlad Yatsenko and Nikolay Storonsky in 2015, during the same period as UK challenger banks like Starling and Monzo. Since then, it has outperformed competitors in user growth and has embarked on an energetic international expansion.
Revolut Plans To Increase Its Workforce By 40%
Revolut boasts around 40 million customers worldwide, with one-third in the United Kingdom. Monzo and Starling, both licensed as banks, have fewer than 10 million users and function only within the UK. In 2021, Revolut secured $800 million from investors like Tiger Global Management and SoftBank’s Vision Fund 2. The firm expected incomes to increase to £1.7 billion in 2023, up from £923 million the preceding year, achieving a net profit margin in double figures.
The company recently shifted its head office to Canary Wharf after revealing its plans to increase its workforce by 40%. The firm has also been supported by investors such as Molten Ventures, Ribbit Capital, Balderton Capital, and TCV.
