Summary
The founder and Chief Executive Officer of Revolut, Nik Storonsky, has reportedly divested shares in the fintech company valued between $200 million and $300 million. This secondary share sale represents a significant offloading of stock, accounting for approximately 40 to 60 percent of the shares sold, as first reported by Sky News. Since its inception in 2015, Revolut has emerged as one of Europe’s leading technology firms, boasting a current valuation of $45 billion, which surpasses traditional financial institutions such as NatWest, valued at £27.5 billion ($36 billion). Mr. Storonsky, a former trader with Lehman Brothers, currently holds a stake in Revolut estimated to be worth around $8 billion. The recent secondary share sale was organized to enhance liquidity for employees, resulting in an estimated $500 million being distributed among staff. Noteworthy institutional investors participating in the purchase of these shares included Tiger Global Management, Coatue, and D1 Capital Partners. Throughout its operational history, Revolut has expanded its workforce to over 10,000 employees and garnered a customer base exceeding 45 million across 38 nations. Despite facing regulatory challenges, including a protracted three-year process to secure its banking license, the firm ultimately received approval in July of this year. This license enables Revolut to accept customer deposits and extend loans under its own brand. Revolut has confronted regulatory scrutiny regarding its corporate practices, such as the delay in filing accounts and its demanding work culture. In light of these issues, Mr. Storonsky has previously expressed his concerns about the UK’s business climate, citing high taxes and a convoluted bureaucratic regulatory framework. Looking ahead, Revolut’s revenue reported in 2023 reached $2.2 billion, with a pre-tax profit of $545 million, positioning the firm for continued growth. The company anticipates surpassing 50 million customers by the year’s end. While the firm has not commented on Mr. Storonsky’s recent share sale, the developments underscore an intriguing chapter in the ongoing evolution of one of the most valuable fintech entities in Europe.
Original Source: www.theguardian.com
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