- Revolut is rumored to be raising capital and selling previously repurchased shares at a higher valuation in a creative alternative to going public.
- Staying private gives Revolut more flexibility as it expands into new markets and adds roughly one million customers every 17 days, without the scrutiny of quarterly earnings reports.
- The company is likely delaying its IPO until it secures a full UK banking license, but strong investor demand and ample private funding mean Revolut can continue scaling without listing on public markets.
Global banking fintech Revolut is nearing the threshold of two major milestones. The UK-based company is currently seeking to close a $3 billion funding round, marking a $75 billion valuation.
According to Bloomberg, which broke the news, Revolut has spent months putting the round together and has been informing investors about the allocation of shares they’ll receive as part of the oversubscribed round. The investment will bring in cash and offer early backers and employees liquidity.
Revolut declined to comment, but according to people familiar with the matter, Revolut will use the funds as fuel to enter dozens of new markets across the globe in the coming years. Revolut already operates in the European Economic Area (EEA), Australia, Brazil, Japan, New Zealand, Singapore, Switzerland, the UK, and the US, as well as a handful of small territories. Expanding its geographical reach will allow Revolut to deepen its customer base, diversify revenue streams, and strengthen its position as a global financial “super app.”
In August, Revolut bought back some of its own shares from existing investors in a tender offer deal that paid investors for their shares based on the company valuation of $45 billion. Revolut is now considering selling some of the same shares it just bought back to new investors. Notably, this sale would be conducted at a much higher valuation of $75 billion, meaning Revolut could profit significantly from the difference. In addition to selling these existing shares, Revolut may also issue new shares to raise new funding which would bring additional cash into the company as opposed to simply transferring ownership of existing shares.
Sources noted that Revolut CEO Nik Storonsky encouraged early employees to sell some of their stock in order to allow the company to offer more shares to eager new investors. Despite this effort, demand was far greater than supply, so many investors could only buy a small amount. This strong demand showcases Revolut’s rising valuation and positions it well for raising more capital.
This complicated song and dance around share shifting may sound more complicated than simply going public. But many analysts argue that an IPO isn’t ideal for Revolut at the moment. The company is expanding rapidly, adding around one million customers every 17 days, and staying private offers it more flexibility to pivot, experiment, and grow without the quarterly pressure and scrutiny that come with being a public company.
Perhaps the biggest aspect holding the company back is that it has not received its full UK banking license. While the UK Prudential Regulation Authority (PRA) awarded Revolut a banking license in 2024, it did so with restrictions. Regulators have been reviewing the company’s application for years, and not having a banking license significantly decreases both revenue potential and investor confidence. In fact, going public before securing the license could lower Revolut’s valuation or limit interest from institutional investors.
Fortunately for Revolut, private funding is still plentiful. Since the company was founded in 2015, it has been able to raise a large amount of capital privately, and at valuations similar to or higher than what it may get in public markets.