Major victory for Revolut which received its UK banking license ending 3 years wait that will enable the firm to widen the offering. This new license will enable Revolut to compete more directly with traditional banks and offer a wider range of banking services, positioning it as a strong contender in the financial services sector.
The announcement comes as Revolut reported growth revenue of 95% reaching $2.2B in 2023 with $560M in profits, confirming to be one of the world’s largest financial fintechs with 45M customers and on track to increase its revenue by at least 50% in 2024.
Benefitting from the positive market momentum, Revolut is nearing a deal to sell approximately $500M of employee-owned shares at a valuation of $45B. This move, supported by SoftBank and facilitated by Morgan Stanley, signifies a return of investor confidence in the financial technology sector.
The company’s product mix and geographic reach is broad. The UK market is important for Revolut, representing about 29% of its business. and no single product stream or region accounted for more than 30% of its total revenue in 2023, the company continues to take its product global with launch preparation in India and Mexico.
Source: Revolut financials 2023, FT, WSJ
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