Employees and investors sell Revolut shares
Since the second half of 2024, just under US$1 billion worth of Revolut shares have been sold. Employees and investors began selling the securities after the company received a banking licence in the UK, increasing its value to US$45 billion.
Initially, Revolut launched a secondary share sale exclusively for its current employees. The company then widened the process, enabling former employees and investors who had backed the business in its early stages to participate.
FinTech stocks have attracted the attention of many large investors after receiving a banking licence. Among them is the Abu Dhabi-based Mubadala National Fund. According to the Financial Times, the results of the sale were as follows:
– Revolut founder Nick Storonsky raised about US$200 million in the first round alone;
– venture capitalists sold about US$500 million worth of shares in the second round;
– the total raised was around US$1 billion.
These results speak to the company’s financial potential. Revolut has entered a new stage of development, from a FinTech startup to an online bank. In addition, the popularity of the secondary share sale process itself is worth noting. Companies use it to monetise their investments and benefit from the increase in enterprise value.
About the company
Revolut is a UK-Lithuanian company based in London. Nick Storonski and Vlad Yatsenko founded FinTech in 2015.
The company offers customers a wide range of banking services, including account opening and maintenance, debit cards, and currency exchange. It also enables stock trading, cryptocurrency exchange, and peer-to-peer payments.
Revolut offers its customers a multifunctional mobile application. It permits withdrawals from ATMs in 120 currencies and money transfers in 29 currencies.
The company has introduced a mechanism to protect businesses from exchange rate fluctuations. This mechanism involves charging an additional fee for weekend transactions, which ranges from 0.5% to 2%, depending on the amount of the transfer.
The application allows users to make transactions in the main cryptocurrencies, which they can exchange for 25 different fiat currencies. However, users can only convert digital funds; they cannot use them for purchases. This limitation is due to Revolut’s partnership with the Bank of New York, which does not support the transfer of fiat funds to cryptocurrency exchanges.
Securities of US companies are available on the app for stock trading. However, shares cannot be transferred to another broker. If necessary, they can be sold or converted into cash.
