Revolut Employees Participate in $500M Stock Sale as Valuation Hits $45 Billion

Revolut employees are poised to receive a $500 million windfall from selling shares in the fintech giant, which now boasts a valuation of $45 billion.

This stock sale reaffirms Revolut’s position as a premier entity in the UK’s financial technology landscape, escalating its value from the $33 billion valuation it achieved during a fundraising round three years ago.

The transaction enables staff at the London-headquartered company, which recently secured a UK banking licence, to monetize their holdings. Only current Revolut employees with at least one year of tenure are permitted to sell shares in this deal.

With a global workforce exceeding 10,000, including 1,300 employees in Britain, it remains unclear how many workers are participating in the share sale or if the co-founders, CEO Nik Storonsky and CTO Vlad Yatsenko, are selling any stock. New investors Coatue and D1 Capital Partners, along with existing backer Tiger Global, are funding the transaction.

“We’re delighted to provide the opportunity to our employees to realize the benefits of the company’s collective success,” said Storonsky, 40.

This increased valuation is a significant achievement for Revolut, especially as the broader fintech sector faces declining valuations. While low-interest rates had previously boosted young tech companies’ valuations, the substantial increase in borrowing costs since late 2021 has exerted downward pressure. Notably, Klarna’s valuation plummeted from $45.6 billion in June 2021 to $6.7 billion by July the following year.

Revolut’s rapid growth has underpinned its valuation boost. Established in 2015 for foreign exchange and money transfers, Revolut has evolved into a comprehensive financial services provider, offering everything from stock trading to savings products via its app. It also provides loans to European customers under a banking licence from the Bank of Lithuania. With over 45 million global users, the company reported pre-tax profits of £437.8 million last year, on revenues of £1.8 billion.

Revolut anticipates further expansion, having finally obtained a UK banking licence last month after a three-year pursuit. This allows the company to begin lending in its home market and directly compete with traditional banks, aiding its international growth ambitions.

While an IPO is on the horizon, Revolut is reportedly considering a New York listing over one in London. This would be a significant setback for the City, and there are reports that government officials will attempt to persuade Revolut’s leadership to opt for a London IPO during meetings with Tulip Siddiq, the City minister, this year.