Revolut Achieves $75 Billion Valuation as Employees Sell Shares in Substantial Amounts
Revolut Raises $75 Billion in Secondary Share Sale, Signaling Growth and Regulatory Challenges
In a significant move for the fintech sector, Revolut, the European digital banking giant, has launched a secondary share sale at a staggering valuation of $75 billion. This development follows Klarna's potential plans for a New York IPO, indicating improved investor sentiment towards the sector.
The secondary share sale, which values each share at $1,381.06, has attracted interest from both new and existing investors. Notable participants include Coatue, D1 Capital Partners, and Tiger Global. The latest valuation surpasses the market capitalization of traditional lender Barclays, underscoring the rapid growth and potential of fintech companies.
Revolut's expansion strategy has been evident in its recent acquisitions and licensing efforts. The company has made a significant move in Latin America by acquiring Argentina's Banco Cetelem from BNP Paribas. It has also secured banking licenses in Mexico and Lithuania, and is pursuing permits in France and New Zealand. However, the company shelved a US banking license application in 2021 and has since operated through partner banks.
The company's growth has been impressive, serving more than 60 million customers globally, surpassing HSBC's customer count in 2024. However, this growth has not been without regulatory challenges. Revolut's local unit in Australia was fined AU$187,800 by the Australian financial crimes agency AUSTRAC for late submission of compliance reports under anti-money laundering laws.
Chief Executive Nik Storonsky acknowledged the misstep of wanting to be less regulated in the past. He stated, "We understand the importance of regulatory compliance and are committed to meeting all regulatory requirements in every jurisdiction we operate in."
The latest secondary sale comes after Stripe, another fintech company, completed a similar employee share sale at a $91.5 billion valuation in February. Staff at Revolut can sell up to 20% of their holdings in the transaction.
MoltenVentures, which holds Revolut as its largest position at just over 10% of its portfolio, saw its shares gain after news of the secondary sale broke. The company's rapid growth strategy, despite regulatory challenges across its global operations, has been validated by this latest valuation of $75 billion.
In addition to the secondary share sale, Revolut plans to launch US savings products in the coming weeks. The company is also reportedly considering acquiring a US lender to fast-track its American growth. With its continued expansion and strategic moves, Revolut remains a force to be reckoned with in the fintech industry.
