The UK fintech firm, already one of Europe’s most-valuable startups, is seeking to shore up shareholder liquidity without yet launching an IPO.
Revolut is aiming for a valuation of $40 billion (€37 billion) as it prepares to sell existing shares, the Financial Times reported on Thursday evening.
In a deal organised with investment bank Morgan Stanley, the fintech firm seeks to offload $500 million (€468 million) worth of stock, including assets owned by employees.
The valuation would exceed the $33 billion (€31 million) mark Revolut secured during a funding round in 2021. This would put it on par with Lloyds Banking Group, and ahead of UK lender NatWest and France’s Société Générale.
A number of European fintech firms, including Swedish company Klarna, have seen their valuations downgraded over the last two years.
Experts view this as a market correction after a funding boom, with global fintech investment reaching a historic high of $238.9 billion (€223 billion) in 2021. The following year, as capital began to dry up, so did valuations.
In even worse shape is the European IPO market, currently subdued by political uncertainty.
This week Italian trainer brand Golden Goose and Spanish fashion retailer Tendam both postponed listings due to hostile market conditions, provoked by the snap French elections.
Revolut has long floated the possibility of an IPO although it has not yet materialised.
The firm has also spent several years trying to secure a UK banking licence, which would allow it to expand operations in its home country.
This process hit a setback when auditors were unable to verify revenue figures documented in the firm’s 2021 accounts.
Last December, Revolut announced that its annual revenue for 2022 increased by 45% to $1 billion.
Although official figures for 2023 are to be released later this year, Revolut expects revenue to surpass the $2 billion (€1.9 billion) threshold.
