Revolut faces investor pressure for share sale before $1B profit report

Investors are urging Revolut to consider another secondary share sale as new stakeholders seek entry into the fintech firm, Bloomberg News reported on Feb. 27.

Sources familiar with the matter told the news outlet that some shareholders were willing to sell shares in a transaction that could value the company at $60 billion.

This represents a substantial increase from Revolut’s $45 billion valuation in a secondary sale conducted six months ago. Sources said the fintech has not yet initiated an offering and would need to authorize such a move.

The discussions emerge as the company prepares to report approximately $1 billion in pre-tax profit for 2024. 

Regarding a potential initial public offering, the sources said Revolut is unlikely to pursue a public listing before 2026 despite increasing investor appetite. The company is leaning toward a US listing but has not made final decisions.

Investor demand reflects a broader resurgence in fintech valuations. For example, Stripe facilitates stock sales by employees and former employees at a $91.5 billion valuation, up from $70 billion last year.

Favorable winds

The UK-based fintech has been experiencing favorable winds in the past few months.

In November 2024, Revolut announced it had surpassed 50 million customers globally, positioning it among the world’s largest banks by customer count. This milestone puts the fintech in competition with major financial institutions such as Bank of America and JPMorgan on the metric.

Last summer, Revolut allowed employees and early investors to sell approximately $500 million in stock. The round, led by Coatue, D1 Capital Partners, and Tiger Global, was oversubscribed. 

The overwhelming demand prompted Revolut to initiate a follow-up round in November. This round was oversubscribed, enabling former employees who had worked for the company for at least 24 months and had vested shares worth at least $100,000 to sell up to 5% of their holdings.

Furthermore, on July 25, three years after the first application, Revolut announced that it received a restricted banking license from the UK’s Prudential Regulation Authority (PRA), the banking sector regulator.

The license followed the launch of Revolut X in May, the fintech’s crypto exchange.

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