Leading UK neobank Revolut has reached a US$45bn valuation after the completion of a recent employee share sale.
The result sees its worth surge by 36% since its last valuation of US$33bn in 2021, now surpassing the market capitalisations of established high-street banks like NatWest and Barclays.
The secondary share sale, which is expected to generate a US$500m windfall for Revolut’s staff, has attracted institutional investors including Tiger Global Management, Coatue, and D1 Capital Partners.
This development comes on the heels of Revolut’s record annual profits and the recent acquisition of its long-awaited UK banking licence.
Nik Storonsky, Revolut’s Co-founder and CEO, says: “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 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.”
Revolut: Recent expansion strategy
Since its inception in 2015 as a pre-paid card offering free currency exchange, Revolut has seen monumental growth. It now boasts over 10,000 employees, serves 45 million customers across 38 countries and offers more than 50 products and services.
The company’s portfolio has diversified to include home rentals, Buy Now, Pay Later (BNPL) credit and an early wage access service.
The fintech giant’s journey hasn’t been without challenges. Revolut faced scrutiny over its corporate culture and anti-money laundering (AML) controls, which reportedly contributed to delays in securing its UK banking licence.
However, the company maintains it has addressed these issues and now fully complies with relevant regulations.