Fintech
Sale of Revolut Planning shares at a valuation of $40 billion
Revolution it is reportedly planning a stock sale and is seeking a valuation close to that of Lloyds Banking Group.
The British FinTech is seeking a valuation above $40 billion as it works to sell around $500 million of employee shares and other existing shares, the Financial Times (FT) reported Thursday (June 20), citing anonymous sources.
Reached by PYMNTS, Revolut declined to comment on the report.
According to the report, Revolut was last valued at $33 billion in a 2021 fundraising. At that time, it raised $800 million SoftBank‘S Vision 2 Fund, Global tiger management and other investors.
In April it was reported that a Revolut investor believed in FinTechs value it was up 45% at that time compared to a year earlier.
An investment fund supervised by Schröder increased its stake in Revolut, and that stake meant the FinTech’s valuation had increased from $17.7 billion to $25.7 billion, Bloomberg News reported April 15th.
The report said Schroders believes Revolut has made “solid progress” over the past year and cites the international expansion of its services among the reasons for increasing its stake.
Revolut reported in December 2023 that its income rose to $1.1 billion in 2022, up 45% from the $786 million the company reported in 2021.
Over the course of 2022, the FinTech reported a 105% increase in card and interchange revenue, a 48% increase in subscription revenue and a 5,000% surge in interest income on its assets, according to a press release announcing data from its annual report for the year ended December 31, 2022. It also added nearly 10 million users during 2022 and saw a 71% increase in deposits.
“We have strengthened our financial position, expanded our customer base, launched numerous new products, expanded into new markets and strengthened our risk, compliance and governance infrastructure,” said the Revolut CEO Nik Storonsky he said in a press release at the time.
The release of that audited version of the 2022 accounts came months late and followed reports that Revolut auditors had warned they were “unable to satisfy ourselves” about the completeness of some of the company’s revenue information for his Accounts 2021.
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