Revolut Investors Sell $1 Billion in Shares After UK Banking Licence

Revolut's UK banking licence, granted this summer, has spurred a wave of secondary share sales, allowing staff and early investors to offload over $1 billion in stock since August. The London-based fintech extended its secondary share sale twice to accommodate growing demand, enabling current and former employees, as well as early backers, to cash in on their holdings.

The share sale was launched shortly after Revolut secured its UK banking licence, which bolstered confidence among institutional investors. Among the participants was Abu Dhabi's sovereign investor Mubadala, taking its first stake in the company.

Founder and CEO Nik Storonsky reportedly earned between $200 million and $300 million in the initial round of sales. In a subsequent round, early venture capital investors sold approximately $500 million worth of shares, people familiar with the matter disclosed.

These share sales highlight Revolut's rapid evolution from a fintech upstart to a serious contender in the banking industry. The ability of staff and investors to crystallise paper wealth reflects the growing trend of secondary sales in private companies. Such transactions allow firms to retain private status while enabling stakeholders to capitalise on rising valuations.

Revolut's journey to securing its UK banking licence was not without challenges. The process spanned over three years and was marred by issues such as a qualified audit of its 2021 accounts. Nonetheless, the approval has marked a turning point, attracting a rush of institutional interest and significantly boosting its valuation to $45 billion.

This trend of secondary share sales echoes similar moves by other private companies. Earlier this year, payments giant Stripe allowed employees to sell $1 billion worth of shares at a $65 billion valuation. Subsequent secondary sales further increased Stripe's valuation to $70 billion.