Founder and CEO of N26, Valentin Stalf, to resign from executive role and assume a position on the company's Supervisory Board.

In the dynamic world of fintech, Revolut continues to make headlines. The digital banking disruptor has seen significant growth, with its valuation rising to an impressive $75bn following a secondary share sale.

Nik Storonsky, Revolut's founder and CEO, pocketed a substantial sum from a separate share sale last summer, earning between US$200m and US$300m. This windfall could be a prelude to a multibillion-dollar fortune if Revolut manages to reach a valuation of $150bn.

The growth in Revolut's fortunes can be attributed to the surge in subscriptions and revenue from its wealth and crypto trading divisions. As a result, the company's annual profits more than doubled to £1bn in 2024.

However, the path to further expansion has not been without challenges. Revolut remains on a restricted UK banking license since receiving initial approval in July 2024, three years after the application. The delay in obtaining a full banking license has affected the company's expansion into loans and mortgages.

Chancellor Rachel Reeves sought meetings with regulators regarding the delay, but Bank of England Governor Andrew Bailey blocked these meetings due to concerns over potential government interference.

Despite these hurdles, Revolut is not ruling out the possibility of a London Stock Exchange listing. However, recent speculation suggests that New York could be a more appealing destination for the company's IPO. Nik Storonsky himself hinted at this possibility last December, citing the regulatory environment and market size as advantages.

This potential shift could be a blow to the City and the London Stock Exchange, as it could divert listings and investment activity. The Financial Times has even suggested that such a move could boost New York's status as a financial centre, while potentially impacting the London Stock Exchange.

Amidst these developments, employees can expect payouts in early autumn, with each share in the sale priced at US$1,381.06. Employees can sell up to 20% of their personal holdings in the coming weeks.

It's worth noting that Revolut has addressed previous accounting issues, EU regulatory breaches, and concerns over its corporate culture. The company has also made efforts to provide opportunities for employees to gain liquidity, according to a Revolut spokesperson.

The news of Revolut's growth and potential IPO comes at a time when there have been growing numbers of defections from companies choosing to list abroad rather than on the London Stock Exchange. This trend could signal a shift in the financial landscape, with cities like New York emerging as increasingly attractive destinations for tech companies seeking to go public.

As the story unfolds, one thing is certain: Revolut's journey is far from over. The fintech giant continues to push boundaries and redefine the banking landscape, offering a glimpse into the future of financial services.

Featured Image Credit: Edited by our platform Switzerland, based on image by altumcode via Unsplash.

Founder and CEO of N26, Valentin Stalf, to resign from executive role and assume a position on the company's Supervisory Board.