Fintech
Nikolay Storonsky to sell part of his stake in Revolut
Nikolay Storonsky, CEO of British fintech firm Revolut, will cash in on part of his multibillion-dollar stake in the company as part of a $500 million share sale.
Last month, the digital finance app was said to have partnered with bankers to sell shares, which include those held by employees, valuing the company at more than $40 billion.
The size of Storonsky’s stake in the company remains unclear, and the size of any sale will depend on the valuation Revolut attracts from new investors and the company’s final allocation decisions.
The company plans to go public, but interim CFO Victor Stinga declined to comment on any IPO timing earlier this month. Revolut posted a record pre-tax profit of £438 million ($553.8 million) in 2023, driven by strong user growth and rising interest income, cementing its position as Europe’s most valuable startup.
The 2023 results, filed ahead of the September deadline, marked the first time in three years that Revolut has published its financials on time. The company had previously delayed the publication of its 2021 and 2022 accounts, attracting scrutiny from regulators. Revolut hopes the timely publication of its latest results will confirm its improved financial controls.
Revolut’s Revenue almost doubled to £1.8bn in 2023, while net interest income rose to £500m, up from £83m in 2022. In contrast, the company posted a pre-tax loss of £25.4m in 2022, after a pre-tax profit of £40m in 2021.
The new rating would exceed Revolut’s previous valuation was $33 billion raised during a fundraising round in 2021.
Revolut has also applied for a UK banking licence, but approval is still pending for three years. UK CEO Francesca Carlesi noted that the application process is ongoing but involves many steps. “We are optimistic by nature but, you know, at the same time, I don’t think we should put a timeline on that,” she said.
CEO of Revolut Nikolay Storonsky also expressed confidence in getting a UK banking license in an interview with CNBC. The company continues to work closely with UK regulators on the application, according to its annual report.
The fintech landscape in the UK has seen mixed fortunes, with competitors like Monzo recently securing decent funding, while others struggle to maintain their unicorn status. The sector has faced a funding squeeze in recent years as investors have become more cautious about high pandemic-era valuations and are pushing for profitability.