Valuation of Revolut skyrockets to $75bn, set to result in big profit for the company's CEO.

Revolut Valued at $75 Billion in Secondary Share Sale

Revolut, the leading neobank founded by British-Russian entrepreneur Nik Storonsky, has announced a secondary share sale, marking a significant increase from its previous valuation of $45 billion. The new valuation places the fintech company at $75 billion.

The secondary share sale allows private companies like Revolut to attract new investors without issuing new stock. This move comes amidst a trend among fintech firms to remain private, as the subdued public markets offer less appealing conditions compared to the deeper liquidity offered overseas.

Storonsky, who owns about 25% of the company, could see a major payout due to the hefty valuation increase. His pay package bears similarities to Elon Musk's at Tesla, with gradual pay bumps as Revolut hits higher valuation milestones. If Revult hits all its targets, Storonsky could own up to 10% of the company, potentially making his personal wealth exceed $18 billion.

The fintech company has faced a series of headaches in the UK in pursuit of its banking licence, leading to Storonsky's criticism of the country's "bureaucracy". His criticism of a London listing suggests that Revolut may not consider a float in the City when it decides to go public. Instead, the deeper liquidity offered overseas may make a listing outside of London more attractive.

London-based staff can sell up to 20% of their stake in Revolut through the secondary share sale. However, a spokesperson for the company has stated that they will not comment further until the employee secondary share sale is complete.

Meanwhile, another fintech company, Klarna, put its planned float in New York on hold earlier this year due to disrupted market stability caused by Trump's tariffs. The disruption in the market may have influenced Revolut's decision to pursue a secondary share sale rather than a public listing.

Despite the challenges, Revolut continues to thrive, offering a range of financial services to millions of customers worldwide. The company's success underscores the growing influence of fintech in the financial services industry, and the potential for further growth and innovation in the years to come.

Valuation of Revolut skyrockets to $75bn, set to result in big profit for the company's CEO.