Revolut saw record profit before tax for the full year 2023, further cementing its position as Britain’s most valuable fintech.
Tech investing giant Tiger Global Management is in line to take charge of a new share deal at Revolut, according to reports. This is expected to be worth some $500 million (€458.52 million), with a number of other parties also interested in buying more Revolut shares.
The particular share deal is expected to be a secondary offering, with current employees selling some of the shares they own, instead of the company issuing new shares.
Revolut’s first funding round, back in 2021, was also jointly led by Tiger Global and was worth $800 million (€731.90 million). Morgan Stanley is also expected to be part of this deal. However, SoftBank, which had worked on the primary funding round in 2021, will not be part of the secondary share deal.
The deal is expected to happen later this year, Sky News reported.
Currently, Revolut has about 10,000 employees, several of which have stock options included with their overall compensation packages. It has not been revealed how many employees will be able to sell their stocks as part of this deal.
Revolut’s chief executive officer (CEO) Nik Storonsky, is expected to sell tens, if not hundreds of millions worth of stock.
If the secondary share sale goes well, it could go a long way in cementing Revolut’s reputation as Britain’s most valuable fintech. It will also help the company recover from the slew of regulatory challenges and issues faced last year, when the National Crime Agency investigated the release of funds from suspicious accounts.
Revolut hits record profit before tax of $545 million in 2023
Revolut saw record profits for the full year of 2023, with group revenue soaring 95% to $2.2 billion last year, up from $1.1 billion in 2022. Similarly, net profit margin was 19%, due to better unit costs, increased efficiency and scalability and the robust performance of high-revenue streams.
Storonsky said in the company’s earnings’ press release: “Our customer base is expanding at impressive rates, and our diversified business model continues to fuel exceptional financial performance, delivering revenues of over $2.2 billion in 2023 and a record profit before tax of $545 million. With a net profit of $428 million, 2023 was our third profitable year in a row.
“Every day, our products create value for new customer segments and new global markets. We remain committed to our ongoing UK banking licence application in addition to bringing the Revolut app to new markets and customers around the world.”
Revolut also revealed that its global retail customers had already reached 45 million currently, with the company bringing in nearly 12 million new customers worldwide in 2023, which was the biggest year-on-year jump ever.
