The Valuation of Revolut: A Closer Look at the $45 Billion Secondary Share Sale

In a recent announcement, British fintech startup Revolut revealed that it had achieved a staggering valuation of $45 billion in a secondary share sale involving both existing and new investors. This valuation is a clear reflection of the company’s exceptional financial performance in recent quarters and the successful execution of its strategic objectives. The round was spearheaded by Coatue, D1 Capital Partners, and existing investor Tiger Global, underscoring the confidence that leading investors have in Revolut’s potential.

The $45 billion valuation marks a significant increase from the $33 billion valuation that Revolut had secured just a few months earlier in July 2021. This meteoric rise in valuation demonstrates the market’s recognition of Revolut’s value proposition and its potential for long-term success. CEO Nik Storonsky expressed his satisfaction with the opportunity for employees to benefit from the company’s success and the addition of new investors who align with Revolut’s vision.

Regulatory Hurdles Overcome

Revolut’s attainment of a banking license in the U.K. with certain restrictions was a significant milestone for the company, ending a lengthy three-year process that began in 2021. Challenges related to Revolut’s share structure initially posed obstacles to obtaining the license, as it did not comply with the regulations set forth by the U.K.’s Prudential Regulation Authority. However, these issues have since been addressed, allowing Revolut to expand its services to include customer deposits, loans, and credit cards.

With the banking license now secured, Revolut is focused on building out its banking infrastructure in the U.K. to prepare for an official launch. The company’s commitment to redefining the traditional banking landscape is evident through its continuous innovation and strategic partnerships. The $45 billion valuation serves as a testament to Revolut’s growth trajectory and its ability to capitalize on emerging opportunities in the financial technology sector.

Revolut’s $45 billion valuation in the secondary share sale showcases the company’s remarkable journey from a startup to a major player in the fintech industry. With a clear vision, robust financial performance, and a commitment to regulatory compliance, Revolut is well-positioned to shape the future of banking and investment services.