Revolut becomes Europe’s most valuable private tech firm after $500m employee share sale
UK challenger Revolut has become Europe’s most valuable private tech company, reaching a $45 billion valuation after a secondary share sale that provided liquidity to its employees.
Revolut now valued at $45 billion
The shares, acquired by a combination of new and existing investors including Tiger Global, Coatue, and D1 Capital Partners, are anticipated to generate $500 million for the firm’s employees.
“We’re delighted to provide the opportunity to our employees to realise the benefits of the company’s collective success,” states CEO Nik Storonsky. “It’s their hard work, innovation, and dedication that has driven us to become the most valuable private technology company in Europe.”
Revolut’s latest valuation, up from $33 million in 2021, reflects the firm’s recent strong financial performance. In 2023, the company reported $2.2 billion in revenue, marking a 95% year-on-year growth, and $545 million profit before tax.
So far, 2024 is shaping up to be another successful year for Revolut, with the challenger predicting over 80% annual revenue growth and a user base increase of five million, aiming to reach 50 million customers by year’s end.
Additionally, the company has secured a banking licence in Mexico and received a restricted UK banking licence, concluding its three-year wait.
Founded in 2015 in London as a digital payments and money transfer app, Revolut has since expanded globally, diversifying its offerings to include advance wage payments, home rentals, BNPL credit, cryptocurrency trading, and more.
Given its new high valuation, surpassing many prominent UK high street banks, and record profits, speculation about Revolut’s stock market debut is mounting. Although a date and location have not been confirmed, the Financial Times reports that the UK Treasury plans to promote London’s advantages, even as Revolut leans towards a potential New York listing.
