Revolut Becomes Europe’s Most Valuable Private Tech Firm

Revolut, the UK-based challenger bank, has reached a $45 billion valuation, making it Europe’s most valuable private tech company. This milestone was achieved following a secondary share sale, allowing employees to cash in on $500 million in shares acquired by investors, including Tiger Global, Coatue, and D1 Capital Partners.

CEO Nik Storonsky praised the achievement, attributing the company’s success to its employees’ hard work and innovation. “We’re delighted to provide the opportunity to our employees to realize the benefits of the company’s collective success,” Storonsky said.

The valuation leap from $33 billion in 2021 reflects Revolut’s strong financial performance, with 2023 revenues reaching $2.2 billion—a 95% increase from the previous year—and a profit of $545 million before tax. The company anticipates continued growth in 2024, projecting an 80% rise in annual revenue and aiming to expand its user base by five million to hit 50 million customers by year-end.

Revolut has also secured significant regulatory milestones, obtaining a banking license in Mexico and a restricted UK banking license after a three-year wait. Founded in 2015 as a digital payments app, Revolut has since diversified its offerings globally, including services like cryptocurrency trading, buy now, pay later (BNPL) credit, and more.

As Revolut’s valuation now surpasses many traditional UK high street banks, speculation grows about its potential stock market debut. While no date or location has been confirmed, reports suggest that the UK Treasury may advocate for a London listing, though Revolut could also consider New York.