Revolut’s CEO Nikolay Storonsky is reportedly planning to cash in part of his multibillion-dollar stake in the company through a $500 million share sale. The exact size of his stake remains unclear, but it is expected to be a significant portion of the total valuation.
The Financial Times had previously reported that Revolut is in talks with bankers for a share sale that could value the company at over $40 billion. This sale would include shares held by employees as well. The success of the share sale would depend on the interest garnered from new investors and the final valuation that Revolut can attract.
Revolut has expressed its intention to go public in the future, but no concrete timeline has been provided. The interim chief financial officer, Victor Stinga, opted not to comment on the IPO timeline during a recent interaction. The company’s exceptional performance in 2023, with a record pretax profit of £438 million ($553.8 million), has positioned it as one of Europe’s leading startups.
The fintech industry in the UK has been facing challenges, particularly concerning funding and valuation issues. Investors have become more cautious about high valuations post-pandemic and are pushing for profitability. Despite applying for a banking license in the UK three years ago, Revolut is still waiting for approval, highlighting the regulatory hurdles faced by fintech companies in the region.
Revolut’s upcoming share sale, involving a partial cashing in of the CEO’s stake, could be a significant milestone for the company. The valuation achieved through this sale, along with the response from potential investors, will be critical in shaping Revolut’s future trajectory. As the company continues to navigate the evolving fintech landscape and regulatory challenges, its ability to maintain profitability and sustain growth will be closely watched by industry observers.