British
fintech Revolut has started allowing employees to sell shares at a
$75 billion valuation, marking a significant jump from last year’s $45
billion price tag as the company weighs acquisition opportunities
in the United States.
Revolut Launches $75
Billion Secondary Share Sale as Growth Plans Take Shape
The
secondary share sale values each share at $1,381.06, according to an internal
memo seen by Bloomberg. Staff can sell up to 20% of their holdings in the
transaction, which has already attracted interest from both new and existing
investors.
The latest
valuation puts Revolut above the market capitalization of traditional lender
Barclays, though the comparison involves private versus public market
pricing. For Revolut, the sale continues a pattern of using secondary
transactions to provide employee liquidity while avoiding the public
markets.
“As
part of our commitment to our employees, we regularly provide
opportunities for them to gain liquidity,” a Revolut spokesperson
said. “An employee secondary share sale is currently in process,
and we won’t be commenting further until it is complete.”
US Banking License in
Focus
The share
sale comes as Revolut explores its next major expansion push. The
company has been talking to investment bankers about potentially acquiring
a US lender to fast-track its American growth, rather than going through the
lengthy process of applying for its own banking license.
Revolut shelved
a US banking license application in 2021 and has since operated through
partner banks. Now, with President Donald Trump’s administration signaling
a more accommodating stance toward financial deregulation,
the company sees an opening.
The fintech
plans to launch US savings products in the coming weeks and has ramped up
marketing spending, including offering free subway rides to New Yorkers.
Getting a banking license through acquisition would let Revolut offer
loans and other services directly to American customers.
The US push
reflects lessons learned from Revolut’s
protracted UK licensing process. The company spent more than three
years securing its British banking permit and remains under strict
regulatory oversight even now.
Chief
Executive Nik Storonsky acknowledged the misstep, saying, “For a long time
I wanted to be as less regulated as possible, it was the completely
wrong decision.”
Global Footprint and
Compliance Issues
Revolut’s
global ambitions haven’t been without challenges. Australian financial
crimes agency AUSTRAC fined the company’s local unit AU$187,800 for late
submission of compliance reports under anti-money laundering laws.
The penalty
highlights the compliance burden facing fintechs as they expand
across multiple jurisdictions. Revolut self-reported the violations and
cooperated with regulators, according to AUSTRAC.
“These
are the real-life consequences of failures to report,” said AUSTRAC
CEO Brendan Thomas. “Remittance services are attractive to money
launderers and other types of criminals because they can move funds cheaply and
quickly across borders.”
The
Australian fine represents a relatively small cost for Revolut, which
reported £3.1 billion in revenue last year, up 72%. The company now serves
more than 60 million customers globally, surpassing HSBC’s customer count
in 2024.
Revolut
has secured banking licenses in Mexico and Lithuania and is pursuing
permits in France and
New Zealand. The company has also made acquisitions, including Argentina’s
Banco Cetelem from BNP
Paribas as part of its Latin American expansion.
Fintech Liquidity Trends
The
secondary sale reflects broader trends in the private fintech market. With
IPO activity remaining sluggish, companies like Stripe have turned to
employee share sales to provide liquidity. Stripe completed a similar
transaction in February at a $91.5 billion valuation.
Last year’s
Revolut
secondary sale was led by US investors Coatue, D1 Capital Partners and
Tiger Global. CEO Storonsky sold about $250 million of his stake in that
roughly $500 million transaction.
Molten
Ventures, which holds Revolut as its largest position at just over 10% of
its portfolio, saw its shares gain as much as 5.7% after news of the secondary
sale broke.
The latest
valuation comes as European fintechs show renewed confidence. Sweden’s Klarna
has been considering resuming plans for a New York IPO, signaling
improved investor sentiment toward the sector.
For
Revolut, the $75 billion price tag represents validation of its rapid growth
strategy, even as regulatory challenges persist across its global
operations.
This article was written by Damian Chmiel at www.financemagnates.com.
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