In a remarkable turn of events, employees at Revolut, the London-based financial technology company, are set to share a staggering £500 million in stock through a sale. This move comes as Revolut’s valuation skyrockets to an impressive £45 billion, solidifying its status as a leading player in Britain’s fintech sector. The shares sale marks a significant increase from the $33 billion valuation assigned to the company during a fundraising round just three years ago, allowing Revolut’s staff to benefit from the company’s rapid growth and success.
Eligibility for the stock sale is limited to existing employees who have been with the company for at least a year. With over 10,000 employees worldwide, including 1,300 in Britain, it remains unclear how many will participate in the deal or whether co-founders Nik Storonsky, the CEO, and Vlad Yatsenko, the CTO, will sell their shares. The transaction has drawn interest from new investors, including Coatue and D1 Capital Partners, along with existing supporter Tiger Global.
Storonsky expressed his excitement about providing employees with the chance to enjoy the rewards of the company’s collective success. Revolut’s higher valuation is noteworthy, especially amid declining valuations in the broader fintech industry, which has been affected by rising borrowing costs since late 2021. The company’s rapid growth, transitioning from a foreign exchange and money transfer service in 2015 to a comprehensive financial services provider, has played a crucial role in its strong market position.
With more than 45 million customers globally, Revolut reported pre-tax profits of £437.8 million on revenues of £1.8 billion last year. The recent acquisition of a UK banking license, following a three-year pursuit, is expected to further boost the company’s growth by enabling lending in its home market and facilitating international expansion. As Revolut continues to flourish, speculation about a potential stock market flotation is increasing, with reports indicating a preference for a New York listing over London, which could pose a significant challenge for the City. The UK government is anticipated to engage with Revolut’s leadership this year to encourage a listing in London.
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