The Russian-born British citizen Nik Storonsky, founder and CEO of the UK-based fintech giant Revolut, is set to partially cash out his stake in the company through a $500 million (£391 million) secondary share sale, Sky News reports. Storonsky, whose stake in Revolut is valued at several billion dollars, plans to sell shares worth tens to hundreds of millions of dollars in the coming months.
Revolut has enlisted Morgan Stanley to manage the share sale, with expectations to attract a valuation of no less than $33 billion (£26 billion), matching its primary funding valuation from 2021. However, the valuation could reach as high as $40 billion (£31 billion), depending on investor interest and final allocation decisions by the company and its advisers.
Revolut, boasting over 40 million customers, will not raise new capital in this transaction, though the share sale will be closely monitored within the global fintech sector. The sale is expected to be limited to company employees, many of whom have stock options as part of their compensation.
The company recently announced record earnings of £438 million for the previous year, with revenues nearly doubling to £1.8 billion. Despite facing regulatory and compliance challenges, Revolut‘s customer base has grown rapidly, from 16.4 million at the time of its Series E fundraising nearly three years ago.
Insiders believe Revolut’s sustained growth justifies its status as Britain’s most valuable fintech despite a downturn in tech valuations. Other fintechs, such as Monzo, have also seen significant funding, but many tech companies with unicorn valuations now struggle to stay afloat.
Revolut’s shareholders include prominent investors like SoftBank’s Vision Fund and Tiger Global. Prospective investors have shown significant interest in the upcoming share sale.
Additionally, news of the share sale comes amid ongoing anticipation for Revolut’s UK banking license, pending for over three years. Storonsky has publicly criticized the delays, suggesting reluctance towards listing on the London Stock Exchange due to regulatory frustrations.
Board members might also participate in the secondary share sale, including Martin Gilbert, the company’s chairman, and Michael Sherwood, a former Goldman Sachs executive. However, the exclusion of non-employees from this deal could draw criticism from some external investors.
