This private equity sale by Revolut will help the company generate liquidity for early investors and employees.
Revolut, potentially Europe’s most valuable startup, is looking to liquidate $4 billion worth of its existing stake, according to a Financial Times report on Thursday, June 20. The move is consistent with other private companies seeking alternative liquidity options for shareholders amid a sluggish IPO market.
According to reports, fintech company Revolut is teaming up with banking giant Morgan Stanley to sell its stake. The move will also help free up additional cash for early investors and existing employees, people familiar with the matter said.
The FT report also states that Revolut is currently conducting a stake sale at a valuation of $40 billion, up from $33 billion in 2021. For several years, FinTech company Revolut has been seeking a banking license from UK regulators with the aim of: We provide additional services in the domestic market. Over the past few years, Revolut has added several new customers to its pool.
Revolut announced that its 2022 revenue rose 45% to 922.5 million pounds ($1.17 billion). The company has yet to report last year’s results, but previously predicted 2023 sales would be around £2bn.
dRevolut has been preparing for an initial public offering (IPO) for a long time, but is waiting for the right time to list in a lukewarm stock market. But holding on for long wasn’t an option as some early investors and employees were waiting to sell their stake to create liquidity.
Revolut’s plans for cryptocurrency exchange
Digital bank Revolut has launched Revolut X, a cryptocurrency exchange aimed at professional cryptocurrency traders. Headquartered in London, Revolut has over 40 million customers globally and developed Revolut X to compete with leading cryptocurrency exchanges. After enabling cryptocurrency buying and selling within the app for several years, Revolut announced in February that it would be introducing a dedicated exchange.
Having a standalone exchange will allow Revolut to provide users with a seamless trading experience instead of indulging in buying and selling through the Revolut app. Additionally, the exchange will provide trading facilities with lower fees.
While some banks offer cryptocurrency trading services to their customers, Revolut is one of the first banks to establish a dedicated standalone cryptocurrency exchange for this purpose.
According to the latest report, banking giant Standard Chartered is also working to set up a trading desk for BTC and ETH. Therefore, Revolut is likely to face strong competition from existing market players.
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