London (AFP) – British digital bank Revolut, whose growth has exploded in recent years, reached a valuation of $115 billion Wednesday following a secondary share sale, a source close to the deal said Wednesday. This represents a jump of more than 50 percent in value compared to the $75-billion valuation achieved in September. A secondary share sale sees existing shareholders sell stock to other investors, as opposed to a company issuing new shares.
“We can confirm that a secondary share sale process is underway,” Revolut said in a statement. “As is standard, we won’t comment on the details while the process is ongoing, and we’ll provide an update once it has completed.”
Revolut is worth more than long-established UK bank Barclays, which is worth almost $95 billion, but still sits far behind industry giant HSBC, valued at almost $350 billion. Founded in 2015, Revolut has millions of customers across more than 40 countries, and has been a leader in rolling out financial services via smartphones, initially focusing on allowing clients to easily exchange currencies and make transfers.
It obtained a full UK banking licence from regulators in March, lifting restrictions on it competing with established retail lenders in its home market. It previously secured such authorisation in the European Union. The full UK licence allows Revolut to lend to customers in the country and offers them stronger financial protections. The fintech is awaiting a US banking licence.
Revolut’s rapid growth has meanwhile drawn criticism in recent years regarding its ability to comply with financial regulations, particularly those aimed at combating fraud and money laundering.
© 2024 AFP
