Revolut is Now Europe’s Most Valuable Startup
Revolut is now valued at $45 billion and is the most valuable startup in Europe. The startup’s valuation rose following a secondary Revolut share sale by employees.
According to Reuters, Revolut’s valuation announcement comes after the Financial Times reported that the UK government was planning to meet Revolut’s leadership to convince them to list on the London Stock Exchange instead of New York.
Cashing Shares
The latest share sale now allows staff in Revolut to cash in their stock and bring new investors into Revolut’s fold.
“We’re delighted to provide our employees the opportunity to realize the benefits of the company’s collective success. It’s their hard work, innovation, and dedication that has driven us to become the most valuable private technology company in Europe,” Nik Storonsky, Revolut said.
The shares sale was led by various partners including Tiger Global, D1 Capital Partners, and Coatue.
Valuable Than Banks
The $45 billion Revolut share valuation makes the fintech company more valuable than some European banks. The fintech company’s valuation now doubles that of the French Bank Societe Generale whose current valuation now stands at $19 billion. Revolut is also more valuable than UK’s Barclay’s $43 billion.
In Europe, valuation of conventional banks has been affected by new regulations and weak profitability. For instance, Barclays bank shares have been on the recovery path for more than a decade. Revolut investors are positive that the fintech company will have better growth prospects compared to those of conventional lenders.
Revolut’s valuation hit the $33 billion mark in 2021 following an $800 million funding round that it won after jostling with Checkout.com and Klarna for Europe’s most valuable startup title. The latest Europe valuation share sale places Revolut at the top of the list.
Banking License
Revolut recently secured a UK banking license following a three-year wait that resulted from difficulties in scrutinizing its internal accounting procedures. Investors are confident that with the license, the fintech company will lure customers who opt for app-based banking from leading street banks.
Revolut can do this without incurring the cost associated with maintaining a network of branches. In 2023, the company announced a pre-tax profit of $564 million and $2.2 billion in total revenue.
The size of the latest Revolut share sale has not been disclosed. It’s also unclear whether Storonsky also cashed part of his stake in the share sale. Previously, Sky News reported that the CEO would sell part of his stake.
