UK neobank Revolut has secured a $75 billion valuation after completing a secondary share sale, according to its own announcement and multiple media reports. The deal was led by leading investors Coatue, Greenoaks, Fidelity, and Dragoneer, placing Revolut among the most valuable private fintech companies globally.
What the Deal Entails
- Revolut described the transaction as a share sale that provided liquidity to its employees, rather than raising primary capital.
- Investors in the deal include top-tier firms: Coatue, Greenoaks, Dragoneer, and Fidelity Management & Research were the lead participants.
- Additional participants reportedly include Andreessen Horowitz, Franklin Templeton, and Nvidia’s VC arm, NVentures.
- Revolut did not publicly disclose how much money was exchanged in the sale.
Why This Valuation Matters
- The new $75B valuation represents a 66% increase from a $45B valuation reported in August 2024, highlighting rapid value growth.
- According to Revolut, its 2024 revenue surged 72% to $4.0B, while its pre-tax profit rose 149% to $1.4B, underlining strong financial momentum.
- Revolut claims to serve more than 65 million users globally.
- The company has been expanding internationally, having recently secured banking license authorizations in Mexico and Colombia.
Strategic Implications and Use of Funds
- Revolut says the transaction deepens its partnerships with “world-class” investors, especially Nvidia, which could support future initiatives in AI and fintech integration.
- By allowing employees to sell shares, Revolut is reinforcing its liquidity program, as this marks the fifth time it has offered such an opportunity.
- The valuation boost could strengthen Revolut’s push to become a “global bank,” with long-term ambitions across major regions.
Risks and Challenges Ahead
- Despite the high valuation, Revolut still faces regulatory hurdles: its UK banking license remains in a “mobilisation phase”, meaning its full-scale banking operations in Britain are not yet fully authorised.
- Some analysts may question the sustainability of its business model, particularly given the company’s reliance on high-growth fintech services like crypto, payments, and trading.
- As this was a secondary sale (mainly liquidity for existing shareholders), it does not necessarily reflect new cash being raised to fuel aggressive expansion — though Revolut frames it as a signal of confidence.
What to Watch Next
- Whether Revolut will use this valuation as a springboard for a public listing or IPO.
- How Revolut leverages its partnership with Nvidia — whether this leads to new AI-powered financial products.
- Revolut’s continued regulatory journey, especially in new markets like Mexico, Colombia, and potentially India, as noted in its growth plans.
- How the company balances offering liquidity to employees with maintaining its long-term equity structure and governance.
Bottom Line: Revolut’s $75 billion valuation — backed by heavyweight institutional investors — underscores its strength as a fintech powerhouse. While not a cash raise, the secondary share sale both rewards employees and aligns the company with leading global investors, potentially setting the stage for its next phase of growth.
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