Revolut Founder to Sell Stake in Company in $500m Share Sale
Nik Storonsky, the chief executive of fintech giant Revolut, is planning to sell part of his multibillion-dollar stake in the company as part of a $500m (£391m) share sale. According to sources in the city, Storonsky intends to offload stock worth tens or even hundreds of millions of dollars in the secondary deal in the coming weeks. The exact size of his stake is unclear, but at Revolut’s desired valuation of $40bn (£31bn), it would be worth several billion dollars.
Last month, Sky News reported that Revolut had hired Morgan Stanley to organize the secondary share sale, which will take place at a minimum valuation of $33bn (£26bn), the same as its primary funding round in 2021. While the fintech, with over 40 million customers, is not seeking new capital through this transaction, the size of Storonsky’s disposal will depend on the valuation Revolut can attract from new investors, as well as final allocation decisions by the company and its advisers.
Revolut’s rapid growth and success have made it a leading player in the global fintech sector. Last year, the company reported record earnings of £438m and revenues that nearly doubled to £1.8bn. Despite facing regulatory and compliance challenges, Revolut’s expansion has been relentless, with its customer base growing from 16.4 million in 2018 to over 40 million today.
The secondary share sale is expected to be limited to company employees, as Revolut has allotted stock options to many of its 10,000 workers as part of their compensation packages. However, it is unclear how many employees will be eligible to participate in the transaction.
Revolut’s current shareholders include SoftBank’s Vision Fund and Tiger Global. According to sources, the company has received numerous expressions of interest from potential investors. This announcement comes as investors eagerly await news on Revolut’s application for a UK banking license, which it applied for over three years ago. Despite the delay, Storonsky has been critical of British regulators and politicians, and last year, he questioned the company’s potential listing on the London Stock Exchange.
It is expected that other board members, including chairman Martin Gilbert and director Michael Sherwood, will also participate in the secondary share sale. However, the exclusion of non-employees from the deal may draw criticism from some investors. Revolut has conducted similar secondary share sales in the past, including after its 2021 Series E round. The company declined to comment on the matter.
