Revolut, Britain’s largest fintech company, is preparing to allow employees to cash in on a stock sale valued at approximately $500 million (£394 million).
Sky News has learned that the banking and payments service provider is engaging investment bankers to coordinate this substantial secondary share sale. Morgan Stanley, the Wall Street bank, is expected to play a pivotal role in this offering, scheduled for later this year.
City sources revealed that Nik Storonsky, Revolut’s co-founder and CEO, is determined to achieve a valuation of at least $33 billion (£26 billion), matching the company’s 2021 primary funding round. “This will not be a down-round,” asserted a source familiar with Revolut’s strategy.
While Revolut, which boasts over 40 million customers, does not plan to raise new capital through this transaction, the sizeable share sale will still attract significant attention in the global fintech sector. The sale is expected to be restricted to company employees.
Revolut ranks among the world’s largest financial technology businesses, with revenues nearly doubling last year to around £1.7 billion, according to forthcoming reports. Founded in 2015, the company has faced various regulatory and compliance challenges, including the release of funds flagged by the National Crime Agency as suspicious.
Despite a broader downturn in tech valuations over the past two years, insiders argue that Revolut’s relentless expansion justifies its status as Britain’s most valuable fintech. Customer numbers have surged from 16.4 million during the Series E fundraising nearly three years ago.
Monzo, another UK-based digital bank, recently raised nearly £500 million, backed by Alphabet’s investment arm and a Singaporean sovereign wealth fund. In contrast, many tech companies with unicorn valuations are now struggling to stay afloat.
Revolut has granted stock options to many of its 10,000 employees as part of their compensation packages, though it remains unclear how many will be eligible to sell equity in this transaction. The company has reportedly received numerous expressions of interest from prospective investors.
Current shareholders of Revolut include SoftBank’s Vision Fund and Tiger Global. News of the proposed share sale emerges as investors await updates on Revolut’s application for a UK banking license, which has been pending for over three years. Storonsky has publicly criticized the delay, suggesting that a listing on the London Stock Exchange is unlikely.
While an IPO seems distant, it wouldn’t surprise investors if Revolut initiated a listing process within the next few years. Board members are expected to participate in the secondary share sale, although specific details remain unclear.
Revolut is chaired by City veteran Martin Gilbert, who has faced governance and performance challenges at AssetCo. The board also includes Michael Sherwood, a former Goldman Sachs executive.
Some external shareholders might criticize the exclusion of non-employees from this deal. Revolut has conducted similar secondary share sales in the past, including after its 2021 Series E round.
This weekend, Revolut declined to comment.
Source: news.sky.com
