Revolut’s goal to achieve a $45bn (£34.5bn) valuation has been successfully achieved, making it Europe’s most valuable startup.
The UK fintech secured the capital via an employee share sale facilitated by Morgan Stanley. Shares were acquired from Coatue, D1 Capital Partners and Tiger Global, although it is unknown how much the shares were acquired for.
It has been reported that Revolut was looking to raise $500m worth of employees shares in the sale to private investors. Employees had been informed of this during a meeting earlier this month.
Staff who have been with Revolut for at least a year were eligible to sell 20% of their options for $865 per share, with former employees ineligible.
Revolut’s new valuation means that not only is it Europe’s most valuable startup, but it is one of the most valuable banks in the UK. Its validation exceeds that of Barclays, Lloyd’s and NatWest’s market capitalisation.
Revolut CEO and Co-Founder, Nik Storonsky hailed the new valuation as a marker in its bid to “redefine the banking landscape”.
He said: “We’re delighted to provide the opportunity to our employees to realise the benefits of the company’s collective success.
“It’s their hard work, innovation and dedication that has driven us to become the most valuable private technology company in Europe. We’re also excited to partner with several new investors who share our vision as we continue our journey to redefine the banking landscape as we’ve known it.”
Revolut’s valuation now increases by 36% since its last funding round in 2021. This saw the company valued at $33bn (£25.6bn) which was deemed successful during the downturn of fintech investment and the incoming economic uncertainty a year later.
2024 is quickly becoming the fintech’s most successful year to date. Revolut, after a three-year battle, finally secured a banking licence which not only enables it to begin offering customer lending options, but also solidify itself as a reputable bank.
The company also recorded record profits of £438m for the full financial year in 2023, with revenue increasing by 95% from the year prior, reaching £1.8bn.
