Revolut, Britain’s leading fintech company, is again making headlines with its latest strategic move to facilitate a $500 million share sale. This initiative will enable the company’s employees to cash in on their stock options, a decision that reflects Revolut’s robust growth and market confidence despite ongoing regulatory challenges.
Coordinating the Sale
Revolut has engaged Morgan Stanley, the Wall Street banking giant, to coordinate this significant secondary share sale. Scheduled for later this year, the transaction is anticipated to be worth around £394 million ($500 million). The sale will be exclusive to company employees, providing them with an opportunity to monetize their equity holdings.
Nik Storonsky, co-founder and CEO of Revolut, is aiming to maintain the company’s valuation at no less than the $33 billion (£26 billion) benchmark set during the 2021 primary funding round. “This will not be a down-round,” affirmed a source close to the company, underscoring the leadership’s confidence in Revolut’s sustained valuation despite a challenging market environment.
Impressive Growth Metrics
Revolut’s growth trajectory has been nothing short of remarkable. The fintech company, founded in 2015, now boasts over 40 million customers globally. Revenues have nearly doubled, reaching approximately £1.7 billion, with official figures to be published in the coming months. This impressive growth has solidified Revolut’s position as Britain’s most valuable fintech, even as the broader tech sector faces valuation downturns.
Revolut’s 10,000-strong workforce has been granted stock options as part of their compensation packages. While it remains unclear how many employees will be eligible to sell their shares in this upcoming transaction, the sale offers a significant financial opportunity for many within the company.
The share sale has attracted substantial interest from prospective investors. Revolut’s current shareholders include prominent entities like SoftBank’s Vision Fund and Tiger Global. However, the exclusion of non-employees from this deal could stir some discontent among external investors, who have previously participated in secondary share sales following Revolut’s Series E funding round in 2021.
Despite its rapid expansion, Revolut has faced several regulatory and compliance challenges. A notable issue involved the release of funds from accounts flagged by the National Crime Agency as suspicious. Furthermore, the fintech’s application for a UK banking license has been pending for over three years, with no approval in sight. Storonsky has publicly criticized the delay, which has fueled speculation about Revolut’s potential reluctance to list on the London Stock Exchange.
Leadership and Governance
Revolut’s board is composed of influential figures such as Martin Gilbert, the City veteran who also chairs Assetco, and Michael Sherwood, a former top executive at Goldman Sachs. Their involvement in the upcoming share sale, although not fully detailed, suggests strong internal support for the transaction.
While an initial public offering (IPO) for Revolut appears distant, industry insiders would not be surprised if the company initiates a listing process in the next couple of years. For now, the focus remains on the successful execution of the secondary share sale, which could set the stage for future financial maneuvers.
Revolut’s planned $500 million share sale marks a significant milestone for the fintech giant and its employees. Coordinated by Morgan Stanley, the transaction aims to uphold the company’s high valuation and provide liquidity to its workforce. Despite regulatory hurdles and a cautious IPO outlook, Revolut’s relentless growth and strategic initiatives continue to reinforce its stature as a global fintech leader.
