FinTech unicorn Revolut is streamlining its ownership structure in collaboration with investor SoftBank, paving the way for a long-awaited banking license in the UK. After prolonged discussions, Revolut and SoftBank have reached an agreement. SoftBank had previously sought significant compensation for relinquishing its preferential share class. To secure a UK banking license, Revolut must eliminate preferential shares held by investors, including SoftBank.
The Bank of England mandated Revolut to consolidate its six share classes into one, a requirement set two and a half years ago when the company first sought the license. SoftBank, after leading a funding round of $800 million in 2021 that valued Revolut at $33 billion, sought compensation for forgoing the rights linked to its share portion. This disagreement was a primary factor delaying Revolut‘s banking license acquisition.
The recent agreement does not involve issuing additional shares for SoftBank and won’t affect Revolut‘s financial standing.
Other investors, including Tiger Global Management, TCV, Balderton Capital, and Ribbit Capital, have either consented to merge their shares into a single class or are nearing an agreement.
The Bank of England‘s regulatory division oversees banking license approvals in the UK, with the Financial Conduct Authority (FCA) also needing to give its approval.