UK neobank Revolut valued at $45B after secondary market sale

Revolut has confirmed a new valuation of $45 billion via a secondary market share sale, shortly after the U.K.-based neobank secured its own banking license in the U.K. and Mexico.

The news positions Revolut as one of Europe’s most valuable private tech companies.

Founded in London in 2015, Revolut is one of numerous fintechs to emerge from Europe over the past decade to challenge the big bank incumbents. Revolut offers a range of services spanning multi-currency accounts, payment and transfer services, crypto products, insurance and more. The company has also expanded beyond the U.K. into international markets including Europe and the U.S.

Revolut has raised around $1.7 billion since its inception, its most recent tranche coming via a Series E of $800 million in 2021, which gave it a $33 billion valuation post-money. In the intervening years and against a backdrop of a global economic downturn, Revolut’s valuation reportedly dipped at various junctures. The speculation last year was that it may have fallen to around $20 billion.

With Revolut a private company, nothing was ever confirmed. But off the back of record profits this year and strong user growth, with customers hitting the 45 million mark, rumors emerged that the company was seeking a valuation of around $40 billion; now that’s been confirmed.

Revolut’s secondary share sale today is designed to spur “employee liquidity,” which the company says helps them to “realise their contribution to Revolut’s growth.”

“It’s their hard work, innovation, and dedication that has driven us to become the most valuable private technology company in Europe,” Revolut CEO Nik Storonsky (pictured above) said in a statement.

The secondary sale included a mix of new and existing investors, with Coatue, Tiger Global and D1 Capital Partners leading the chase.

A $45 billion valuation, alongside its recent strong financials, user metrics and newly acquired banking licenses, positions Revolut for its next phase. All eyes will be on the company’s IPO plans, with reports suggesting that it favors a U.S. listing, though the U.K. government is looking to steer it toward domestic shores.