Early
investors and employees of digital banking giant Revolut have sold nearly $1
billion worth of shares since August, marking one of the largest private
secondary sales in fintech history. The transactions value the London-based
fintech at $45 billion.
Mubadala, Goldman Clients
Buy Into $45 Billion Revolut Deal
The share
sale, initially restricted to current employees, expanded to include early
backers and former staff through two extended rounds. CEO Nik Storonsky
realized between $200 million and $300 million from the initial offering,
according to the Financial Times.
Abu Dhabi’s
sovereign wealth fund Mubadala made its debut investment in Revolut during the
sale, while Goldman Sachs private banking clients joined in the second round.
Early venture capital investors accounted for approximately $500 million of the
total sales volume.
UK Banking License
The
substantial secondary offering came shortly after Revolut secured
its UK banking license, a milestone that took over three years to achieve.
The regulatory approval significantly boosted investor confidence, despite
previous challenges including a qualified audit in 2021.
“We are
incredibly proud to reach this important milestone in the journey of the
company,” commented Revolut’s CEO and Co-Founder, Storonsky, in July 2024. “We
will ensure we deliver on making Revolut the bank of choice for UK customers.”
Last month,
Revolut launched UK and EU stock trading under its latest license, entering
into competition with firms like Trading212 and Freetrade. However, the company
is not stopping there and is now seeking a license in New Zealand as well.
Similar
moves have been seen at payments giant Stripe, which facilitated a $1 billion
employee stock sale at
a $65 billion valuation earlier this year.
Revolut Stock News, FAQ
Why have Revolut staff and
early investors sold nearly $1 billion in stock?
Revolut
staff and early investors have sold nearly $1 billion in stock since August for
several key reasons:
- To
capitalize on the company’s increased valuation following its UK banking
license approval. - To provide
liquidity to long-serving employees, allowing them to realize the benefits of
the company’s success. - To attract
new institutional investors while retaining existing ones, as evidenced by the
participation of Coatue, D1 Capital Partners, and Tiger Global in the secondary
share sale. - To
demonstrate confidence in Revolut’s financial performance, with the company
reporting $2.2 billion in revenue for 2023 and a record profit before tax of
$545 million. - To set a
valuation benchmark of $45 billion, which represents a significant increase
from its previous $33 billion valuation in 2021.
This
secondary share sale reflects Revolut’s growth trajectory and serves as a
strategic move to reward employees and attract investors..
Is Revolut on the stock
market?
Revolut is
not currently listed on any stock market. The company remains privately held
and has not yet conducted an initial public offering (IPO).
While there
has been speculation about a potential Revolut IPO, the company has not
officially announced plans or a timeline for going public. CEO Nik Storonsky
has indicated that an IPO could be considered in the next few years, depending
on market conditions and the company’s growth.
Early
investors and employees of digital banking giant Revolut have sold nearly $1
billion worth of shares since August, marking one of the largest private
secondary sales in fintech history. The transactions value the London-based
fintech at $45 billion.
Mubadala, Goldman Clients
Buy Into $45 Billion Revolut Deal
The share
sale, initially restricted to current employees, expanded to include early
backers and former staff through two extended rounds. CEO Nik Storonsky
realized between $200 million and $300 million from the initial offering,
according to the Financial Times.
Abu Dhabi’s
sovereign wealth fund Mubadala made its debut investment in Revolut during the
sale, while Goldman Sachs private banking clients joined in the second round.
Early venture capital investors accounted for approximately $500 million of the
total sales volume.
UK Banking License
The
substantial secondary offering came shortly after Revolut secured
its UK banking license, a milestone that took over three years to achieve.
The regulatory approval significantly boosted investor confidence, despite
previous challenges including a qualified audit in 2021.
“We are
incredibly proud to reach this important milestone in the journey of the
company,” commented Revolut’s CEO and Co-Founder, Storonsky, in July 2024. “We
will ensure we deliver on making Revolut the bank of choice for UK customers.”
Last month,
Revolut launched UK and EU stock trading under its latest license, entering
into competition with firms like Trading212 and Freetrade. However, the company
is not stopping there and is now seeking a license in New Zealand as well.
Similar
moves have been seen at payments giant Stripe, which facilitated a $1 billion
employee stock sale at
a $65 billion valuation earlier this year.
Revolut Stock News, FAQ
Why have Revolut staff and
early investors sold nearly $1 billion in stock?
Revolut
staff and early investors have sold nearly $1 billion in stock since August for
several key reasons:
- To
capitalize on the company’s increased valuation following its UK banking
license approval. - To provide
liquidity to long-serving employees, allowing them to realize the benefits of
the company’s success. - To attract
new institutional investors while retaining existing ones, as evidenced by the
participation of Coatue, D1 Capital Partners, and Tiger Global in the secondary
share sale. - To
demonstrate confidence in Revolut’s financial performance, with the company
reporting $2.2 billion in revenue for 2023 and a record profit before tax of
$545 million. - To set a
valuation benchmark of $45 billion, which represents a significant increase
from its previous $33 billion valuation in 2021.
This
secondary share sale reflects Revolut’s growth trajectory and serves as a
strategic move to reward employees and attract investors..
Is Revolut on the stock
market?
Revolut is
not currently listed on any stock market. The company remains privately held
and has not yet conducted an initial public offering (IPO).
While there
has been speculation about a potential Revolut IPO, the company has not
officially announced plans or a timeline for going public. CEO Nik Storonsky
has indicated that an IPO could be considered in the next few years, depending
on market conditions and the company’s growth.
This post is originally published on FINANCEMAGNATES.
