Jagjit Singh’s Post

🚨 𝘽𝙍𝙀𝘼𝙆𝙄𝙉𝙂: Revolut has secured a $𝟰𝟱𝗯𝗻 valuation in a share sale by employees, as the UK government seeks to convince it to list in London rather than New York. This valuation surpasses the $33 billion it reached in 2021 and positions Revolut as the UK's second-most valuable bank, trailing only HSBC. Institutional investors such as Coatue, D1 Capital Partners, and Tiger Global participated in this latest round, reflecting continued confidence in Revolut's growth trajectory. This development follows Revolut's acquisition of a UK banking licence in July, a significant milestone after a prolonged three-year struggle with regulators. The new licence enables Revolut to hold deposits and expand its lending capabilities within the UK, potentially increasing its chances of securing similar licences in other markets like the US. Despite this progress, Revolut remains inclined towards a potential IPO in New York, favoring the liquidity of Nasdaq over London's stock exchange. The UK government, however, is keen to persuade Revolut to consider a London listing, with Treasury officials planning talks to highlight the advantages of a domestic IPO. This comes as London faces increased competition from New York, particularly after other prominent UK companies, such as chipmaker Arm, chose to list in the US. Revolut's rapid expansion, coupled with its newly acquired banking licence, has made it a prime target for global stock exchanges. Yet, the company's leadership, including CEO Nik Storonsky, has expressed a preference for keeping the company private or opting for a US listing if they decide to go public. While the final decision on the IPO location is yet to be made, the company's current focus on Nasdaq suggests that London may face an uphill battle in securing this highly anticipated listing. Read more: https://lnkd.in/djzVrU6r Find this helpful? [ 𝗿𝗲𝗽𝗼𝘀𝘁 ] Anything to add about this subject? [𝗶𝗻𝘃𝗶𝘁𝗲𝗱 𝘁𝗼 𝗰𝗼𝗺𝗺𝗲𝗻𝘁] Nice story, Marcel. Next! [ 𝗹𝗶𝗸𝗲 ] 

Revolut says secondary share sale valued firm at $45B Revolut Ltd. said a secondary share sale that allowed the company to give employees liquidity for their stakes valued the company at $45 billion. The round was led by investors Coatue, D1 Capital Partners and Tiger Global, according to a statement. Morgan Stanley served as sole placement agent on the deal. The new valuation is up from a $33 billion price tag that Revolut garnered in 2021. Unlike many of its rivals across the fintech landscape, Revolut hasn’t had to raise money in recent years, allowing it to avoid the sharp declines in valuation that many of its peers suffered as high interest rates forced investors to reconsider their support for the space. Klarna Bank AB, for instance, was last valued at $6.7 billion valuation in a 2022 funding round, which was a far cry from the $45.6 billion valuation it received from investors just a year earlier. The Stockholm-based company is also in early talks with investors to gauge their interest in buying up existing shares of the company on the secondary market. Revolut’s announcement caps a process where the company was in talks with investors to sell about $500 million of existing shares, Bloomberg News previously reported. It also comes just weeks after Revolut received a long-awaited banking license from UK regulators. Coatue has a “high level of conviction” in its investment in Revolut, Philippe Laffont, founder and portfolio manager for the investment firm, said in the statement. Revolut Chief Executive Officer Nik Storonsky said he was “delighted” to provide employees with the liquidity. — By Aisha S Gani (Bloomberg News) https://lnkd.in/gZ82R4sm via Bank Automation News https://lnkd.in/dwP6ziAm August 16, 2024 at 02:06PM

Revolut recently announced plans of seeking a valuation of more than US$40bn – if completed would rank Revolut alongside Europe’s biggest banks Revolut is a global neobank and #fintech with headquarters in the UK that offers banking services for retail customers and businesses Key highlights: - If confirmed, the valuation would confirm that the company founded by Nikolay Storonsky in 2015 is Europe's most valuable start-up and set it apart from the rest of the fintech industry where valuations have been squeezed - Such a valuation would be a more than 20% jump on its 2021 valuation of $33 billion, which Revolut achieved when raising cash from investors including Softbank's Vision Fund and Tiger Global Management - Revolut employs about 10,000 people, has 40 million customers globally, including 9 million in the UK https://lnkd.in/gvvT_Edp

📢 Fintech Weekly Digest: Key Developments to Watch📢 Here's a roundup of some of the most significant stories in fintech this week: 1️⃣ **Revolut Hits $45B Valuation in Secondary Share Sale** Revolut continues its rapid ascent, achieving a staggering $45 billion valuation through a secondary share sale. This highlights the growing investor confidence in the company's innovative approach to financial services. As fintech companies gain traction, valuations like this set a strong precedent for the sector’s potential. 🔗 Read more https://lnkd.in/eCrrt3uN 2️⃣ **Deutsche Bank’s Postbank Settlement Rejected by Plaintiffs** A proposed settlement between Deutsche Bank's Postbank and plaintiffs was recently rejected. This decision underscores the increasing scrutiny and challenges that traditional financial institutions face as they navigate complex legal and regulatory landscapes. 🔗 Read more https://lnkd.in/dKFTftPD 3️⃣ **PSR Outlines Next Steps for Variable Recurring Payments in the UK** The UK's Payment Systems Regulator (PSR) has set out the next steps for implementing variable recurring payments. This move is pivotal as it could reshape how businesses and consumers handle regular payments, making the process more flexible and efficient. 🔗 Read more https://lnkd.in/dbYSiinf 4️⃣ **Stablecoin-to-Fiat Transfer App Sling Money Raises $15M** Sling Money, a stablecoin-to-fiat money transfer app, has raised $15 million in its latest funding round. This development highlights the growing integration of stablecoins into mainstream financial systems, offering a bridge between the crypto world and traditional finance. 🔗 Read more https://lnkd.in/dRcG7Z2g The fintech landscape continues to evolve at an unprecedented pace. Valuations like Revolut's and innovative steps like those taken by Sling Money are clear indicators of the industry's growth and the increasing convergence of traditional and digital finance. As these changes unfold, staying ahead of regulatory developments, such as those outlined by the PSR, will be crucial for all players in the space. #Fintech #DigitalFinance #SlingMoney #Revolut #DeutscheBank #PSR #SaxeGlobal #FinancialInnovation #Crypto #Stablecoins

Revolut's recent $45 billion valuation through a share sale has not only made it the most valuable private tech company in Europe but also set the stage for a potential blockbuster IPO. Key Details: - 💼 Employees are in line for a $500 million windfall, highlighting the value of their dedication and hard work. - 📈 This valuation surpasses that of major high street banks like NatWest and Barclays, showing Revolut's growing influence. - 🏦 Revolut recently secured a long-awaited UK banking license, marking a significant milestone in its journey. - 🚀 The company hinted at a public listing, with UK politicians eager to ensure the IPO happens in London. - 🛡️ Despite past challenges with corporate culture and regulatory issues, Revolut has taken significant steps to address these concerns. - 📊 Record annual profits were reported, further solidifying Revolut's strong financial performance. #Fintech #IPO #Innovation Additional Details: - 🌍 Revolut, now serving 45 million customers across 38 countries, continues to expand its global footprint. - 💳 Started as a pre-paid card service, Revolut has diversified into over 50 products and services, including money transfers and buy-now, pay-later options. - 🔍 Investors in the share sale include major institutional players like Tiger Global Management, signaling strong market confidence. - 🌐 The company's rapid growth has positioned it as a leader in redefining the banking landscape, challenging traditional financial institutions. - 📅 The exact timing and location of the anticipated IPO remain unconfirmed, keeping the market eagerly awaiting further announcements. https://lnkd.in/gbigiB5b

Revolut last week finally received a British banking licence from regulators after three years, paving the way for a blockbuster IPO listing. Revolut's banking licence means it can now take deposits from customers. It is also free to offer other services such as home loans. It says there are 'a range of other core banking features' in its 'product roadmap' that include 'mortgages and refinancing loans'. It has announced plans to move into the Irish mortgage market next year. It's a significant milestone for both the company and the fintech industry, so what does Revolut's successful acquisition of a UK banking license with ‘restrictions’ tell us about the state of FinTech regulation? 👉 Its a significant milestone for fintech, but with caveats. 👉 The "authorisation with restrictions" signals a cautious regulatory approach, likely impacting areas like deposit-taking and lending. 👉 This phased authorization model prioritizes consumer protection and risk mitigation, especially for multifaceted fintechs like Revolut. 👉 Underscores the regulatory complexities fintechs face. 👉 Robust governance, transparent reporting, and a deep understanding of evolving regulations remain crucial for sustained success in the UK. #FinTech #Revolut #ukbankinglicense

Revolut: Too Big to Succeed? Following the financial crisis, people labeled legacy banks as "too big to fail." Today, we might wonder if "too big to succeed" is a more fitting for the ambitious start-ups attempting to usurp these giants.   Revolut is one start-up targeting a valuation exceeding $40 billion in an upcoming share sale, which would cement its status as Europe’s most valuable start-up. Backed by SoftBank and working with Morgan Stanley, Revolut aims to sell around $500 million worth of existing shares, including those held by employees.   Achieving this valuation would not only surpass its 2021 valuation, but also place it on par with major players like Lloyds Banking Group. This ambitious target comes despite a challenging market for European fintechs, as seen with Klarna’s recent valuation drop. The mass exodus on the London Stock Exchange (LSE) due to undervaluations and high compliance costs further compounds this.   Upcoming reforms to UK listing rules were praised by the chair of Revolut but remains cautious about committing to a London initial public offering (IPO). As Revolut reports record profits, this development brings both opportunities and challenges.   This marks a change from previous remarks by CEO Nikolay Storonsky, who had previously dismissed the UK regulatory environment. Despite challenges, including auditors' warnings and a prolonged UK banking license application, Revolut remains ambitious. The group expanded its loan book to £528 million and significantly increased advertising and marketing costs. Furthermore, reporting a pre-tax profit of £438 million in 2023, up from a loss of £25 million the previous year. Revenues almost doubled to £1.8 billion, driven by new products and millions of new customers.   However, a banking license is key for the fintech firm in the UK to boost lending and profit, on which a third of its customers are based. On the other hand, a potential IPO on the LSE could revitalize the sector to its former glory. Therefore, regulators face a difficult decision. While granting the UK banking license could increase the likelihood of Revolut listing on the LSE, it could also trigger auditor warnings. Sources: https://lnkd.in/gxzzKCNY https://lnkd.in/gQDebrth https://lnkd.in/g_Q77JZs

Revolut’s $40B valuation would rank it among Europe's top banks, highlighting the disruptive power of neobanks. Yet its small customer deposit base raises questions about liquidity compared to traditional high street banks. While the company’s growth ambitions are impressive, investors and stakeholders will need to monitor its progress closely as it continues on its admirable trajectory. #Fintech #Banking #Innovation #Revolut