Revolut Valued At $45 Billion, More Than Barclays, NatWest
Revolut. Image credit: Revolut
London-based fintech start-up Revolut is now valued higher than many large UK High Street and European banks.
On Friday Revolut announced a secondary share sale to new and existing investors for “liquidity to employees” purposes. At the same time it confirmed the “secondary share sale values Revolut at a $45 billion valuation, cementing its position as the most valuable private technology company in Europe.”
This means that Revolut, which was only granted a UK banking licence in July 2024 after three years of trying, is now valued higher than many large and well known UK and European banks.
Revolut Urban Image credit: Revolut
Share sale
Revolut said it is now worth $45bn, while Barclays’s market value is approximately £33.4bn ($42.4bn) and NatWest’s market capitalisation is £28.3bn ($36.5bn).
French bank Societe Generale has a market capitalisation of approximately $19 billion.
Revolut has over 45 million customers worldwide and said the “secondary share sale allows current employees to capitalise on their contribution to Revolut’s growth, while attracting a diverse mix of both new and existing investors.”
The round was led by Coatue, D1 Capital Partners, and existing investor Tiger Global.
The fintech/bank said its $45bn valuation “reflects the strong financial performance recorded by the company in recent quarters as well as the progress made in executing its strategic objectives.”
Revolut pointed out that in 2023 it had reported revenues of $2.2 billion (a year on year increase of 95 percent) and a record profit before tax of $545 million. The firm in the first half of 2024 has recorded an annual increase in revenue of above 80 percent as well as improved profitability.
Revolut said it is now the fastest growing finance app in 19 markets, and is on track to surpass 50 million customers by the end of 2024.
Banking licences
Last month Revolut had secured a UK banking licence, that will allow it to offer the same UK permissions that traditional High Street banks offer, but without the physical branches that are traditionally associated with British banks.
But it has also secured banking licences in other countries, and recently secured a banking licence in Mexico.
The European Central Bank had granted it a full banking licence in December 2021, after it had secured a specialist bank licence back in 2018.
“We’re delighted to provide the opportunity to our employees to realise the benefits of the company’s collective success,” said Nik Storonsky, CEO of Revolut. “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.”
Nik Storonsky, CEO of Revolut. Image credit: Revolut
“We have a high level of conviction in Revolut’s mission to democratise access to financial services globally,” added Philippe Laffont, founder and portfolio manager at Coatue. “Revolut’s proven ability to scale across dozens of markets is a testament to the team’s commitment to product velocity, financial inclusion, and financial innovation.”
Revolut had begun life in 2015 to tackle expensive overseas spending, and in 2017 it began offering cryptocurrency services, starting with crypto trading.
It is based in London and is licensed and is regulated by the Bank of Lithuania in the European Union, offers banking, currency exchange, payment and other financial services.
Revolut’s products include banking services, currency exchange, debit and credit cards, virtual cards, Apple Pay, interest-bearing ‘vaults’, personal loans and BNPL or buy now, pay later (where it has a banking licence), stock trading, crypto, commodities, human resources and other services.