Revolut has achieved a market capitalisation of $45bn after undergoing a secondary share sale. This enormous valuation makes the UK fintech more valuable than many of its more established competitors, including Barclays PLC – valued at $42bn – and Société Générale, which has a market capitalisation of approximately $18bn. The secondary share sale, Revolut said, would directly benefit its current shareholding employees as well as a mixture of new and existing investors.
“We’re delighted to provide the opportunity to our employees to realise the benefits of the company’s collective success,” said the firm’s chief executive, Nik Storonsky. “It’s their hard work, innovation, and dedication that has driven us to become the most valuable private technology company in Europe. We’re also excited to partner with several new investors who share our vision as we continue our journey to redefine the banking landscape as we’ve known it.”
Recent Revolut profits key factor in valuation, says firm
Revolut is perhaps the UK’s most successful fintech, offering an app that allows users to centralise their bank accounts, conduct cross-border transactions and, more recently in certain jurisdictions, open current accounts, sell branded loans and offer mortgages. As such, the firm claims to serve a total of 45 million customers, half a million of them businesses.
Revolut attributed its high valuation to its “strong financial performance” in recent months, citing its $2.2bn profit in 2023, a year-on-year increase of 95%. “The company has continued its impressive trajectory in the first half of 2024,” it added, “recording an annual increase in revenue of above 80% as well as improved profitability.”
New Labour government courts UK IPO for fintech
The fintech has also notched a number of regulatory victories. Last month, it secured a partial UK banking license after several years of trying, alongside another permit to operate as such in Mexico. Revolut’s secondary share sale is anticipated to be a prelude to a wider initial public offering (IPO) for the firm, though it has declined to reveal when and on which stock exchange this would take place.
According to the Financial Times, fears that the firm favours a New York listing have led officials from the Treasury to lobby for it to remain in the UK. So far, Revolut CEO has poured cold water on the idea, saying that the London Stock Exchange “is much less liquid” than its rival NASDAQ, “so I just don’t see the point.”
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