Revolut achieves $45bn valuation in employee share sale

Revolut has cemented its position as Europe’s most valuable private technology company after securing a $45bn (£34.9bn) valuation in a share sale by employees.

The London-based banking app said on Friday that Coatue, D1 Capital Partners and Tiger Global were among the investors to buy the shares from its staff. The sale was coordinated by Morgan Stanley.

Revolut’s new valuation marks an increase from the $33bn (£25.6bn) figure it previously secured in a 2021 funding round led by SoftBank and Tiger Global and defies a broader downturn in valuations across the fintech sector driven by higher interest rates.

The figure makes Revolut one of the UK’s most valuable banks, surpassing the stock market capitalisations of Lloyds, Barclays and Natwest, and being second only to Europe’s biggest bank HSBC – which is valued at £121.1bn.

Revolut did not disclose the value of the sold shares. It was previously reported to have been in talks to sell around $500m (£388m) of existing equity.

“We’re delighted to provide the opportunity to our employees to realise the benefits of the company’s collective success,” said co-founder and 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.”

Philippe Laffont, Coatue’s founder and portfolio manager, said the investment firm had a “high level of conviction” in Revolut.

Revolut, founded in 2015, booked a record pretax profit of £438m in 2023 on the back of higher interest rates and attracting almost 12m new retail customers over the year. Its global user base recently passed 45m.

The firm said on Friday that it recorded a more than 80 per cent increase in annual revenue in the first half of 2024 and “improved profitability”. It added that its app was on track to surpass 50m users by the end of the year. 

Revolut received a boost last month when it received a UK banking licence, subject to temporary restrictions, after more than three years in regulatory limbo.

The licence allows Revolut to directly hold deposits and increase lending in its home market, where it boasts more than nine million customers. It is also expected to help Revolut’s chances of securing a licence in the US.

Revolut is also looking ahead to the possibilty of a public listing, reportedly favouring the Nasdaq in New York rather than the London Stock Exchange.

City A.M. understands that new City minister Tulip Siddiq is due to meet officials at Revolut this autumn, where among other issues she is expected to discuss its potential listing plans.

Revolut initially launched as a digital payments and money transfer app in the UK before expanding globally and offering a range of services, from cryptocurrency trading to an eSIM plan.