Revolut has clinched a $45bn (£35bn) valuation through a share sale that is expected to net staff a $500m windfall, cementing its position as the most valuable private tech company in Europe.
It is a boost for the London-headquartered firm, which was last valued at $33bn in 2021. It is now worth more than the market valuations of big high street banks, including NatWest and Barclays, which are worth £29bn and £33.5bn, respectively.
Revolut made the announcement as it launched a secondary sale of staff shares to investors. Employees benefiting from the bonanza include Revolut’s co-founder and chief executive, Nik Storonsky, whose stake is not publicly disclosed but is believed to be worth billions of pounds.
The former Lehman Brothers trader launched the bank in 2015, originally as a pre-paid card focused on free currency exchange for customers. It has since grown to more than 10,000 staff, serving 45 million customers in 38 countries, with more than 50 products and services. As well as money transfers, it offers home rentals, buy-now, pay-later credit and a service that pays wages in advance.
“We’re delighted to provide the opportunity to our employees to realise the benefits of the company’s collective success,” Storonsky said in a statement. “It’s their hard work, innovation, and dedication that has 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.”
Those buying the staff shares include the institutional investors Tiger Global Management, Coatue and D1 Capital Partners.
The news comes a month after Revolut reported record annual profits, and weeks after it secured a long-awaited UK banking licence, which took more than three years for regulators to approve.
Revolut had grappled with accusations over a poor corporate culture, and inadequate money laundering controls in recent years, which are believed to have contributed to the delay of its licence.
The fintech company says it has since addressed a number of accounting issues and EU regulatory breaches, and that it fully complies with anti-money laundering and terrorist financing regulations, and has made efforts to improve its working culture.
Together, the bumper valuation, record profits and UK banking should pave the way for a blockbuster stock market listing, although bosses have yet to confirm a date and location for a much-anticipated flotation.
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Revolut hinted it was preparing for a public listing in its annual report in July, saying it had “enhanced” its financial controls in ways expected of “listed companies”.
UK politicians are expected to launch a fresh charm offensive to ensure Revolut lists in London, amid fears it could float its shares overseas in the US. Labour’s City minister, Tulip Siddiq, is expected to raise the issue when she meets Revolut bosses later this autumn.