Nik Storonsky, co-founder of Revolut, has reportedly sold a significant portion of his shares in the fintech during a recent employee share sale.
This transaction, according to media reports, involved between 40% to 60% of Storonsky’s stake, amounting to a value of up to £230m.
Revolut’s co-founder, Nik Storonsky, has reportedly divested a notable portion of his shares in the fintech company in a recent transaction. The sale was a part of an employee share release, which formed a segment of a $500m (£383m) secondary share offering concluded the previous month. Speculations point out that Storonsky’s divested shares constituted approximately 40% to 60% of the share sale, translating to an estimated value between $200m (£153m) and $300m (£230m).
The successful share release, as reported, resulted in a remarkable valuation for Revolut, pegged at approximately $45bn (£34.9bn). This valuation fortifies Revolut’s status as Europe’s most highly valued private technology enterprise and places it amongst the leading banking institutions in the United Kingdom.
This employee share sale was aimed at enhancing liquidity for staff members, a move that saw participation from thousands of employees. Investment entities such as Coatue, D1 Capital Partners, and Tiger Global participated in purchasing shares, enhancing the institutional investment in Revolut.
Since its inception in 2015, Revolut has expanded its portfolio significantly, growing from a digital payment platform to offering varied services, including cryptocurrency trading and eSIM plans.
In 2023, Revolut celebrated a record-breaking pre-tax profit of £438m, driven by an increase in interest rates and a surge in customers, adding nearly 12 million new retail users.
The company’s user base is projected to surpass 50 million globally by the end of this year, which signifies a robust growth trajectory for the fintech.
Revolut’s Entry into Traditional Banking
Earlier this year, Revolut received a UK banking licence with temporary restrictions, a development that positioned the firm to further challenge conventional high street banks.
This licence acquisition permits Revolut to directly hold deposits and expand its lending operations within its domestic market, where it already boasts over nine million customers.
Such regulatory milestones are set to potentially bolster Revolut’s ambition of acquiring a licence in the United States, further internationalising its operations.
There is considerable anticipation surrounding Revolut’s potential public offering, with indications of a preference for listing on the Nasdaq exchange in New York rather than the London Stock Exchange.
The prospect of going public marks a significant strategic decision, which could have far-reaching impacts for the company in terms of capital investment and market expansion.
The reported sale of Nik Storonsky’s shares underscores the dynamic financial activities within Revolut and highlights the company’s strategic moves to enhance liquidity among employees.
Revolut’s remarkable growth and strategic initiatives, such as acquiring a UK banking licence, position it excellently for future expansions and a potential public offering, signifying its robust financial and operational standing.