Friday, September 20, 2024

Revolut valued at 45 billion dollars in sale of employee shares

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Revolut has clinched a valuation of 45 billion dollars (£34.9 billion) via a share sale by its employees, confirming its position as the most valuable start-up in Europe.

The fintech giant announced the sale amid reports that it is being courted by the UK Government in a bid to persuade it to list on the London Stock Exchange, rather than in the US.

Investment groups including Coatue, D1 Capital Partners were among the top buyers of Revolut shares from employees, alongside Tiger Global, which is already a major investor in the company.

Chief executive Nikolay Storonsky said the sale provided the opportunity for employees to “realise the benefits of the company’s collective success”.

He added: “It’s their hard work, innovation, and dedication that has driven us to become the most valuable private technology company in Europe.”

Revolut’s last fundraise came in 2021, when it was valued at 33 billion dollars in a round led by SoftBank and Tiger Global.

The company has not had to raise money since then, meaning it has avoided the sharp declines in valuation that others in the fintech space have endured, amid a wider investment downturn in recent years.

The new figure will add fresh urgency to plans by the City minister, Tulip Siddiq, to meet with the company in the autumn.

The Treasury hopes to persuade Revolut to list in London, while the company favours a float on the Nasdaq in New York, according to reports in the Financial Times newspaper, citing a person familiar with the matter.

A Treasury source said Ms Siddiq routinely meets with companies in the financial sector, including Revolut.

Co-founders Mr Storonsky and Vlad Yatsenko told reporters last year that they would rather keep the company private, but that any likely float would be in the US.

The share sale comes after Revolut secured a UK banking licence, ending a three-year wait for approval to operate as a bank in its home market.

A licence allows the company to hold customer deposits, and offer lending products like credit cards, personal loans, or mortgages.

Philippe Laffont, founder of one of the investors, Coatue, said Revolut “has navigated the complexities of the financial services landscape to deliver an impressive product suite that meets the needs of its rapidly growing customer base”.

Revolut declined to comment on the Government talks.

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