Fintech
Revolut plans a $500 million employee share sale, coordinated by Morgan Stanley
Will Revolut reach its 2021 valuation?
Reaching its $33 billion valuation in 2021 would represent a significant feat for Revolut.
The immediate post-COVID-19 investment landscape they have seen valuations rise to unprecedented levels as venture capital activity has surged following extended periods of lockdown and the release of pent-up capital reserves into the market.
Many fintech companies saw their valuations rise significantly during this period, before falling to more stable levels over the next two years as markets stabilized.
Aiming to match its 2021 valuation, Revolut is confident that its growth rate has been substantial enough to warrant a similarly high valuation.
His confidence in this regard is also not unreasonable. Since its founding in 2015, the fintech has become the UK’s leading neobank, overtaking Monzo and Starling Bank in terms of year-on-year revenue.
With its market-leading digital-first offerings, Revolut has made its intentions to create a mobile “super app” clear in recent times, with plans in place to roll out mobile data offerings following the launch of its eSIM earlier this year. 2024.
The release of eSIM meant Revolut became the first UK financial institution to offer data plans, as part of its bid to grow the Revolut brand beyond just financial services.
Furthermore, Revolut’s latest share sale comes as the company awaits its full banking license in the UK, a process that has so far taken over three years.
As the neobank continues to push for approval, it has launched a number of new solutions to improve the experience of its customers, including its advanced AI functionality to protect yourself from card scams.
Speaking on the product launch, Revolut’s head of fraud, David Eborne, said: “We’ve invested heavily in the product to ensure customers can continue to spend and send money safely. For example, a growing number of banks are increasingly restricting or limiting the ability to make card payments on cryptocurrency and investment websites.”