Revolut Valued at $45bn: $500m Windfall for Employees

Fintech firm Revolut surpasses major banks in valuation, with staff set to gain $500m from a recent share sale. Discover the implications.

Revolut has just bagged a staggering $45 billion (£35 billion) valuation through a share sale that’s set to shower its staff with a delightful $500 million windfall, solidifying its status as the most valuable private tech company in Europe. This is quite the leap for the London-based firm, which was previously valued at $33 billion back in 2021. Now, it’s worth more than some of the big players on the high street, outpacing the market valuations of NatWest and Barclays, which sit at £29 billion and £33.5 billion, respectively.

The announcement came as Revolut kicked off a secondary sale of employee shares to eager investors. Among those cashing in on this bonanza is none other than Revolut’s co-founder and CEO, Nik Storonsky. While the exact value of his stake remains a closely guarded secret, it’s rumored to be worth billions—yes, with a ‘b’. This former Lehman Brothers trader launched the bank in 2015, initially as a pre-paid card service aimed at providing customers with free currency exchange. Fast forward to today, and the company has ballooned to over 10,000 employees, serving a whopping 45 million customers across 38 countries, with an impressive portfolio of more than 50 products and services. From money transfers to home rentals, buy-now-pay-later credit, and even a service that advances wages, they’ve got it all.

The lucky buyers of these staff shares include institutional heavyweights like Tiger Global Management, Coatue, and D1 Capital Partners. This news follows closely on the heels of Revolut reporting record annual profits and securing a long-awaited UK banking license—a feat that took regulators over three years to approve. However, it hasn’t all been smooth sailing; the fintech company has faced its fair share of criticism regarding a lackluster corporate culture and insufficient money laundering controls, which are believed to have delayed the licensing process. Nevertheless, Revolut claims to have tackled several accounting issues and EU regulatory breaches, asserting full compliance with anti-money laundering and terrorist financing regulations, while also making strides to enhance its workplace culture.

With this impressive valuation, record profits, and a shiny new UK banking license, the stage seems set for a blockbuster stock market listing. However, the company’s executives have yet to reveal a date or location for this much-anticipated flotation. In its annual report from July, Revolut hinted at its public listing ambitions, stating it had “enhanced” its financial controls in a manner befitting “listed companies.” So, stay tuned—this fintech saga is far from over!