UK Digital Bank Revolut Achieves $45 Billion Valuation Following Secondary Market Transaction

Revolut recently updated its valuation to $45 billion following a sale of shares on the secondary market. This announcement comes not long after the fintech company received official banking licenses in both the U.K. and Mexico.

This development elevates Revolut to the status of one of the most valued private technology enterprises in Europe.

Launched in London in 2015, Revolut stands among a wave of financial technology firms that have emerged over the last ten years, poised to take on traditional banking giants. The company delivers a diverse suite of offerings that include multi-currency accounts, payments and money transfer services, cryptocurrency options, insurance, among others, venturing from the U.K. to global markets like Europe and the U.S.

Since its founding, Revolut has gathered approximately $1.7 billion in funding. The company’s last funding round in 2021 was a Series E amounting to $800 million, valuing the company at $33 billion post-money. Despite the challenging global economic climate, which led to fluctuations in Revolut’s valuation—with speculations last year hinting at a decrease to about $20 billion—the company has managed to affirm its robust financial standing recently.

Being privately held, Revolut’s financial specifics remained mostly speculative until this year, when soaring profits and a customer base exceeding 45 million paved the way for the firm to ostensibly secure a valuation near $40 billion, a figure that has since been verified.

Today’s secondary share sale by Revolut aims to facilitate “employee liquidity”, allowing its staff to benefit directly from the company’s prosperity.

Revolut CEO Nik Storonsky remarked, “The significant strides we have made to become Europe’s leading private tech company stem from our team’s relentless pursuit of innovation, exemplary dedication, and hard work.”

Prominent among the investors participating in the recent sale were Coatue, Tiger Global, and D1 Capital Partners, featuring a blend of both new and longstanding investors.

With a valuation pegged at $45 billion, reinforced by its impressive financial performance, growing user base, and the acquisition of crucial banking licenses, Revolut is setting the stage for its forthcoming chapter. There is keen anticipation around Revolut’s potential initial public offering (IPO), with discussions indicating a possible preference for a U.S. listing, even as the U.K. government hopes to keep the company’s listing local.