British fintech company Revolut is sending shock waves through the traditional finance world after an employee share sale led to a valuation of $45 billion, making it Europe's most valuable private technology company.
An employee share sale is when employees sell shares in their company to the company they work for, to outside investors, or on the open market. In Revolut's case, employees sold some of their shares to investors including Coatue, D1 Capital Partners and Tiger Global.
Revolut's new market capitalization exceeds that of most of Britain's oldest banks, including Barclays, Lloyds and NatWest. Only HSBC is valued higher. Revolut investors are clearly convinced the neobank has much better growth prospects than many traditional lenders.
Revolut CEO Nick Storonski said he was “pleased” that the sale would allow employees to benefit from the company's “collective success. We're also excited to partner with several new investors who share our vision as we continue our journey to redefine banking as we know it.”
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The new valuation comes at a good time for Revolut: Last month, the company finally received its UK banking license, allowing it to offer overdrafts, loans and savings products just like traditional banks. Revolut says it expects to report revenue of $2.2 billion in 2023 and have more than 50 million customers by the end of this year.
The news comes as Revolut prepares for its long-awaited IPO. The British company has yet to set a date for its public offering, but co-founders Storonsky and Vlado Yatsenko have previously suggested a New York listing is more likely. However, a London listing is still a possibility, the Financial Times reports.
