Revolut has informed staff that it intends to launch a share sale of up to $500m in a bid to raise its valuation to $45bn.
This significant move by the UK fintech would see it become not only one of the most valuable banks in the UK, but also the most valuable startup in Europe.
Revolut employees were told of the share sale last Friday with one person present at the meeting revealing that the deal is expected to be finalised within the next month, noting that the company will not be providing any further details until it has been complete.
Reports coming out of the news last Friday revealed that staff who have been with Revolut for at least a year will be eligible to sell 20% of their share options for $865 per share, with former employees ineligible.
The secondary share sale of Revolut’s 7,000 employees would enable the fintech company to help reach its valuation target, whilst also sharing that it is “committed to enabling its employees to share in the company’s success by becoming shareholders”.
Last June, Revolut brought on board Morgan Stanley to assist in its initial share sale plans. The company had originally projected a $40bn valuation, but new reports from The Financial Times indicate that Revolut is targeting $45bn in valuation.
In its last funding round conducted in 2021, Revolut was last valued at $33bn following the backing of SoftBank and Tiger Global.
If new funding into the company were to take Revolut to its $45bn valuation, 2024 will prove to be one of, if not the most significant in the company’s history.
Revolut finally secured a UK banking licence after a three-year wait recently, enabling it to serve its nine million UK customers with new lending options, as well providing stability and confidence in the newly recognised bank.
Not only does the banking licence signal fintech’s surge in prominence across the UK’s financial landscape, its projected valuation would also see Revolut become more valuable than high-street banks NatWest and Barclays.
Funding prospects were further bolstered after Revolut posted record profits of £438m off the back of £1.8bn in yearly revenue.
