The London-based fintech startup Revolut, founded by entrepreneurs of Ukrainian descent, is preparing for a large secondary stock sale with a record company valuation of $75 billion. According to information from a corporate memorandum received by employees, both new and existing investors have already expressed interest in the shares.
This is reported by Finway
Revolut Employees Will Be Able to Monetize Their Shares
Employees of the company will be allowed to sell up to 20% of their own stock packages. This was reported by an informed insider who wished to remain anonymous due to the fact that the details of the deal have not yet been publicly disclosed.
This deal is expected to solidify Revolut’s status as one of the most valuable fintech companies in the world. The current valuation significantly exceeds the $45 billion achieved during last year’s stock sale round and even surpasses the market capitalization of Barclays Plc, although the deal is taking place in the private sector rather than on the open market.
“As part of our commitment to employees, we regularly create opportunities for them to gain liquidity,” said a company representative in a written statement. “The process of secondary stock sales for employees is currently underway, and we will not comment on it until it is completed.”
Market Dynamics and Impact on the Industry
The news of the private stock sale has positively impacted the shares of Molten Ventures Plc — the securities of the venture fund, in which Revolut accounts for over 10%, surged by 5.7%. This is confirmed by data from Molten Ventures’ annual report for March.
Secondary stock sales are becoming increasingly popular among private companies, allowing current investors to monetize assets without issuing new securities. The IPO market has remained sluggish for the past three years, prompting major fintech players like Revolut to resort to similar mechanisms to ensure liquidity for their staff.
Similar decisions have been made by Stripe Inc., which conducted a large stock buyback from employees and shareholders in February this year, valuing its business at $91.5 billion. During last year’s secondary stock sale, American investors Coatue, D1 Capital Partners, and Tiger Global led the round, in which CEO Nik Storonsky sold shares worth $250 million, representing between 40% and 60% of a total package valued at $500 million.
It is worth noting that Revolut is not the only company trying to capitalize on the growing optimism in the fintech market. Klarna Group Plc is currently considering reviving its IPO plans in New York.
Revolut, headquartered in London, is demonstrating rapid growth. Last year, the company served more customers than HSBC Holdings Plc, resulting in a 72% increase in revenue to $4 billion and a rise in profit. The total number of Revolut customers now exceeds 60 million.
The digital bank continues its active international expansion and is currently considering hiring investment bankers for a potential acquisition in the U.S. to obtain an American banking license.