Revolut Founder Moves to Sell $500M in Shares

In a significant financial move, Nik Storonsky, the founder and chief executive of the leading fintech company Revolut, is set to sell part of his stake in a deal valued at $500 million. This decision comes amidst the backdrop of the company's robust financial performance and rapid customer growth.

At a valuation of $40 billion for Revolut, Storonsky's stake could be worth several billion dollars, though the exact size remains undisclosed. It is important to note that the share sale, facilitated by Morgan Stanley, is intended for existing shareholders to liquidate parts of their shares and is not directed towards raising new capital for the company.

Revolut, a fintech behemoth with over 40 million customers, has doubled its revenues to £1.8 billion, with record earnings reported at £438 million in the past year. The company has seen its customer base skyrocket from 16.4 million just three years ago. Such impressive figures highlight the company's steady trajectory in a highly competitive market.

On the regulatory front, Revolut has faced challenges, notably concerning the release of funds from accounts that have been flagged as suspicious. The company is also amidst a prolonged wait for a UK banking license, with its application pending for over three years. Major Revolut investors like SoftBank's Vision Fund and Tiger Global anticipate favorable developments concerning the license.

The share sale is exclusively targeted at Revolut employees, allowing them to reap the benefits of the company's growth. This sale might also include participation from notable board members such as Chairman Martin Gilbert and former Goldman Sachs executive Michael Sherwood. Revolut has a history of conducting similar secondary share sales, such as the one following its 2021 Series E round. Such initiatives have been key in compensating employees with stock option packages, aligning their interests with the company's success.

Despite facing the general headwinds in the technology sector, industry insiders and analysts assert that Revolut's aggressive expansion supports its status as Britain's most valuable fintech firm. The company's swift and strategic growth has been a cornerstone in cementing this reputation.

The company has declined to provide comments on the ongoing share sale process. However, it is evident that this strategic financial move is aligned with the company's past practices and its commitment to monetizing the gains for its stakeholders. It reflects the maturing fintech market and Revolut's active role in shaping the journey ahead for digital financial services.