UK fintech Revolut is reportedly facing pressure from its investors to explore another share sale.
According to Bloomberg, new investors are keen to buy shares in the company and some existing shareholders are interested in selling. A new evaluation could be close to $60bn, a sharp rise from its $45bn valuation six months ago.
The significant increase is driven by reports suggesting that Revolut will reach a record $1bn in pre-tax profit for 2024, up from $545m in the previous year. Despite this growth, the fintech is not currently planning another share sale.
Revolut is the UK’s largest challenger bank with over 50 million customers, as reported last November. Founded in 2014, the neobank has continuously grown and attracted customers away from traditional institutions due to its technological advancements.
This growth shows no signs of slowing, as Revolut applied for a New Zealand banking licence late last year and recently expanded into Ukraine, swelling its already large European footprint.
As the company has grown it hasn’t only expanded geographically but also diversified its offerings. In January, Revolut confirmed to Payment Expert plans to enter private banking. This initiative looks to benefit wealthy individuals by providing investment services and tailored solutions.
Despite all of this success, the company is unlikely to go public until 2026. It is believed that Revolut currently prefers the idea of a public offering in the US, which would be a huge blow to the UK economy during troubling times for Prime Minister Keir Starmer.
Fellow neobank Monzo also shares the same dilemma. Last month, it was reported by the Financial Times that its executives are going back and forth on whether the listing should be in the UK or the US.
Chief executive TS Anil is believed to prefer a listing in the US, while the company’s board wants to stay in its home market.
