European private startup Revolut is seeking to sell $500 million worth of company shares for a total value of up to $40 billion.
Europe’s most valuable startup potential According to a report published by the Financial Times on Thursday, June 20, Revolut intends to liquidate $4 billion in its current equity. This action is consistent with the efforts of other private companies to provide shareholders with alternative liquidity options in the context of a stagnant IPO market.
According to the report, Morgan Stanley, a banking behemoth, will collaborate with FinTech firm Revolut for the stake sale. According to sources with knowledge of the situation, the transaction will also facilitate the release of additional funds for current employees and early investors.
The FT report also indicates that Revolut is conducting the current stake sale at a valuation of $40 billion, an increase from its $33 billion valuation in 2021. Revolut, a FinTech company, has pursued a banking license from the UK regulator for several years to provide supplementary services in its domestic market. Revolut has acquired numerous new consumers in recent years.
Revolut disclosed that its revenue for 2022 increased by 45% to £922.5 million ($1.17 billion). The company had previously anticipated that revenue for 2023 would be approximately £2 billion, although it has not yet disclosed its results for the previous year.
Revolut has been preparing for an Initial Public Offering (IPO) for an extended period; however, it is currently awaiting the appropriate moment to list on the public market in the context of a sluggish equity market. Nevertheless, it was not feasible to maintain a position for an extended period, as confident early investors and employees were anticipating the stake sale to generate liquidity.
Revolut’s Strategies for Crypto Exchange
Electronic banking Revolut has introduced Revolut X, a cryptocurrency exchange designed to serve professional cryptocurrency traders’ needs. Revolut X was developed by London-based Revolut, which has over 40 million consumers worldwide, to compete with the most prominent crypto exchanges. Revolut announced in February that it would introduce a dedicated exchange after enabling crypto purchasing and selling within its app for several years.
With the implementation of a standalone exchange, Revolut will be able to provide users with a seamless trading experience, as opposed to engaging in purchasing and selling through the Revolut app. Additionally, the exchange will offer a trading facility at reduced fees.
Revolut is among the first to establish a dedicated standalone crypto exchange, whereas some banks offer cryptocurrency trading services to their consumers.
According to the most recent report, Standard Chartered, a banking behemoth, is also establishing a trading desk for BTC and ETH. Consequently, Revolut will probably encounter formidable competition from established market participants.
