Revolut confirms $115 billion valuation after latest share sale, up from $75 billion in less than a year
British fintech company Revolut Ltd. has closed its latest secondary share sale, confirming a valuation of $115 billion, marking a significant increase from its $75 billion valuation in its previous funding round completed less than a year ago.
The transaction was led by Glade Brook Capital Partners, Coatue, Durable Capital Partners, accounts advised by T. Rowe Price Associates Inc. and Baillie Gifford, the London-headquartered company said in a statement on Wednesday, Bloomberg reported.
The secondary share sale, which began in July, allowed existing investors, including employees, to sell their holdings to other investors. The transaction did not involve the issuance of new shares by Revolut.
The latest valuation represents a substantial jump from the $75 billion valuation secured by the company in its previous funding round, highlighting investor interest in one of the world's fastest-growing financial technology companies.
Revolut CEO Nik Storonsky said employee ownership has been an important part of the company's culture since its inception and that the latest transaction provided employees with an opportunity to benefit from the value created by the business.
"Employee ownership has been central to our culture from day one," Storonsky said in the statement. "That's why we've once again given them the chance to share in the value they've created."
The secondary sale provides liquidity to existing shareholders without requiring the company to raise fresh capital through the issuance of new equity.
Founded in 2015, Revolut has emerged as one of the world's largest and fastest-growing fintech companies, expanding its financial services offerings and international presence.
Storonsky has previously indicated that he wants to take the company public. However, a stock market listing is unlikely before 2028.
The company is considering a dual listing in the United Kingdom and the United States, which would allow its shares to trade in both markets.
Revolut enters UK's personal loan market, takes on major banks with unsecured lending from £2,000 to £25,000
British fintech giant Revolut has entered the UK's unsecured personal lending market, taking on established high-street banks as it looks to expand beyond payments and subscription services and strengthen its position as a primary banking provider.
The London-headquartered company began offering unsecured personal loans in Britain on October 26, its UK chief executive Francesca Carlesi told Reuters. The move brings Revolut into a lucrative consumer lending market dominated by major lenders, including NatWest, Lloyds, Barclays, Santander UK and HSBC.
The loans will range from £2,000 to £25,000, with interest rates starting at 6.9% and going up to 29.3%, a Revolut spokesperson told Reuters.
"We want to transition from being a very successful everyday spending app and disrupting the market, to become effectively the primary bank of choice for everybody in the UK," Carlesi said.
The personal loan offering is part of Revolut's broader strategy to expand its financial services portfolio and generate more revenue from each customer.
Carlesi said the company also plans to introduce a credit card product in the near future, as it seeks to compete more directly with traditional banks across multiple consumer banking segments.
Increasing revenue generated per customer remains an important priority for Revolut, as the metric currently lags that of established banking institutions.
The entry into personal lending marks a shift beyond the company's traditional payments, money transfer and subscription-based offerings towards a riskier business that exposes lenders to potential defaults and credit losses.
Revolut plans to adopt a cautious approach to its entry into the British personal loan market.
According to Carlesi, the company will initially make loans available to a selected group of customers before gradually expanding the service to its entire UK customer base of approximately 14 million over the coming months.
Although Revolut already offers unsecured personal loans in several other countries, Britain represents one of its biggest markets.
The expansion into UK consumer lending could help the fintech deepen its relationship with existing customers while competing for a larger share of the country's retail banking business.
(With Bloomberg, Reuters inputs)
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