Revolut, a UK-based fintech, recently earned a valuation of 45 billion dollars (equivalent to 41 billion euros), securing its position as the most valuable startup in Europe despite the general downturn in the fintech sector. This valuation came as a result of a share sale by the company’s employees, with noteworthy investment firms such as Coatue, D1 Capital, and Tiger Global buying their shares.
Nikolay Storonsky, the company’s CEO, expressed his joy at being able to offer this opportunity to their employees and allow them to enjoy the fruits of the company’s collective achievements. This latest valuation significantly surpasses the 33 billion dollars that Revolut attained in a 2021 funding round led by SoftBank and Tiger Global.
This escalated valuation makes the startup’s prospective IPO an even more desirable prospect for global stock markets. The British Government is planning to hold discussions with Revolut later this year in an effort to persuade the company to host its listing in London rather than New York. The company, however, appears to lean towards an IPO on the Nasdaq, according to a source with firsthand understanding of the situation.
Storonsky and Revolut’s other founder, Vlad Yatsenko, had previously expressed their preference for keeping the company privately owned, however, they did imply that a flotation in New York would be likely if one should occur. Storonsky once mentioned the liquidity issue London stock exchange faced and how it negatively affected their inclination towards it as an IPO venue.
Moreover, securing a UK banking license last month which ended a lengthy three-year negotiation with regulatory authorities, allowed Revolut to further grow in its local market. The fintech had been waiting for this license for quite a while, it already has a customer base of over 45 million users worldwide, out of which 9 million live in the UK. It also holds a European banking license from Lithuania and received one from Mexico earlier this year.
The important UK license not only provides a significant credibility boost for Revolut, but also increases the chances of the fintech firm being recognised as a bank in other international markets, particularly the United States.