Britain’s financial technology firm Revolut might be valued at over $40 billion in an upcoming share sale, despite still awaiting a UK banking licence, according to sources familiar with the situation.
The Financial Times reported on Thursday that the digital finance app is working with bankers on a $500 million share sale, which includes shares held by employees, potentially valuing the company at more than $40 billion.
This valuation would surpass the $33 billion achieved in a 2021 fundraising round. Notably, the firm applied for a UK banking licence over two years ago.
Britain’s fintech industry has faced a funding crunch in recent years, with pandemic-era valuations coming under pressure as investors become more cautious.
Despite this, Revolut remains the country’s most valuable start-up and is one of several financial services apps that have emerged in Britain over the last decade, offering services without physical branches.
Founded in 2015, Revolut has grown rapidly, now boasting 40 million customers globally, with 9 million in Britain.
The company plans to expand its workforce to 11,500 by the end of 2024.
Revolut’s 2023 accounts have not yet been published, but the company expects to generate $2 billion in revenue for 2023, representing an increase of more than 80% from the previous year.
Additionally, the firm anticipates achieving a “double-digit net profit margin.”
Revolut’s impressive growth trajectory highlights its resilience and potential, even amid the cautious investor climate.
The company’s ability to attract a significant valuation underscores its prominence in the fintech sector and its ambitious plans for future expansion.