Fintech
Revolut aims for $40 billion valuation with record $553 million profit
Revolut, the leading UK-based neobank, has made a record pre-tax profit of £438 million ($553.1 million) for the full year 2023.
The fintech attributes these record returns to strong user growth rates and rising interest-related revenues.
The results come as Revolut eyes $500M share sale at a valuation of $40 billion, up from $33 billion valuation reached its 2021 fundraising goal.
Indeed, these positive results should significantly help fundraising efforts, with revenues in fiscal 2023 set to double from the previous year, reaching £1.8 billion ($2.3 billion), shattering initial forecasts.
The biggest contributor here was a surge in interest income, which rose to £500 million ($638 million) in 2023 from £83 million ($106 million) the previous year.
The 2023 results represent a marked improvement on 2022, when Revolut posted a pre-tax loss of £25.4 million ($32.4 million).
Record Profit on Road to $500M Fundraise
In June this year, it emerged that Revolut was looking to sell $500 million in shares, including shares held by its employees.
The valuation, despite Revolut’s impressive 2023 fiscal year profits, would buck the current trend of a fintech funding crunch, as VCs have gradually pulled back from the post-pandemic fintech investment boom.
Raising $500 million at a $40 billion valuation would be even more impressive considering that Revolut has yet to receive a full banking license in the UK.
In an interview with CNBC, Revolut CEO Nikolay Storonsky is optimistic that the neobank can secure a license, in an effort that has so far taken three years.