Revolut, the British fintech company, is planning a $500 million share sale that could see its valuation soar beyond $40 billion. The sale includes shares held by employees, including CEO Nikolay Storonsky, who is set to cash in part of his multibillion-dollar stake.
According to Sky News, the company is working with bankers to facilitate the share sale, following reports last month from the Financial Times that indicated such a move. While the exact size of Storonsky’s stake remains unclear, the final amount he sells will be influenced by Revolut’s final valuation and allocation decisions.
The news follows a record pretax profit of £438 million ($553.8 million) reported by Revolut for 2023. The strong financial performance was attributed to user growth and a surge in interest-related income, solidifying the company’s position as Europe’s most valuable startup.
Revolut has signaled its intent to go public, though its interim CFO, Victor Stinga, declined to comment on a specific timeline for an IPO. The company’s impressive growth trajectory, however, suggests that a listing is likely on the horizon.
Despite its strong performance, Revolut faces the challenges of a funding crunch in the UK fintech industry, where investors are increasingly demanding profitability from companies. Additionally, the company is still awaiting approval for a UK banking license, which it applied for three years ago.
While the share sale represents a significant step for Revolut, it remains to be seen whether the company can maintain its impressive momentum in a rapidly changing fintech landscape.