Revolut Share Sales Hit $1B Mark as Investors Cash In

Monday, 16/12/2024 | 09:26 GMT by Damian Chmiel

Revolut's early backers and employees have sold shares through a secondary offering, valuing the company at $45 billion.

The sale attracted major institutional investors, including Mubadala and Goldman Sachs' private banking clients.

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.

Nik Storonsky, Revolut's CEO — Nik Storonsky, Source: LinkedIn

“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.