Fintech giant Revolut could be moving closer to an IPO after an employee share sale pointed to a huge increase in its valuation.
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Valuation Hike
According to reports in both the Financial Times and Bloomberg, Revolut told staff today that they would be allowed to sell up to 20% of their shares in the business to make way for other investors.
The deal values the business at $75 billion, which is a 60% increase from last summer when another employee share sale valued the group at $45 billion.
A fundraising round in 2021 led by SoftBank and Tiger Global had valued the company, whose range of offerings include banking, savings and stock trading, at $33 billion. It currently has over 60 million personal customers around the world and over 500,000 business customers.
Last year it broadened the reach of its crypto exchange, Revolut X, by launching it in 30 new countries across the European Economic Area (EEA).
According to the document seen by the two publications, the company’s performance over the last 12 months had “led to further investor demand from both new and existing world class investors.”
International Expansion
It is understood that the company will use the funds from the latest round to step up its international expansion. It is believed to be looking at making a move to buy a nationally chartered bank in the U.S.
Last year the group, founded by Nikolay Storonsky and Vlad Yatsenko in 2015, won the right to won a U.K. banking licence. However, it is still waiting permission to lend.
A Revolut spokesperson said: ”As part of our commitment to our employees, we regularly provide opportunities for them to gain liquidity. An employee secondary share sale is currently in process, and we won’t be commenting further until it is complete.”
Revolut is widely tipped to be heading for an IPO sometime this year, most likely in the U.S.
“This move solidifies its position as the UK’s most valuable fin tech company. This could be a sign that the company will either IPO soon, or that its employees are getting antsy about the lack of an IPO and want to release their equity in the firm rather than wait for the IPO,” said Kathleen Brooks, research director at XTB. “Whatever this moves signals, it is deep shame that Revolut is not planning to IPO in the UK.”
What Other IPOs Are Being Lined Up?
According to our IPO calendar there is n’t a great deal of activity to get investors excited about this month.
