Revolut hasoffered former employees the chance to sell their shares back to the company ata price that implies a valuation of about $52.5 billion, roughly 30% below the$75 billion level set in its latest funding round completed in November.
The offerprices the stock at $966.74 per share for alumni, according to correspondencesent to former staff. And seen by the Financial Times.
Revolut’s Discounted OfferFollows $75 Billion Round
The buybackfor ex-employees comes shortly after Revolut’s latest secondary share sale,which was led by Coatue, Greenoaks, Dragoneer and Fidelity and valued thefintech at$75 billion. That valuation puts the London-based group in the same rangeas UK high street banks suchas Barclays and Lloyds, despite Revolut still operating without a full UKbanking license.
In thecorrespondence to former staff, Revolut said the alumni offer is 30% below therecent funding valuation but represents a 12% premium to the price available ina 2024 secondary sale. A person familiar with the program said some formeremployees stand to make substantial sums, potentially in the millions ofdollars, depending on the size of their holdings.
Company Cites Former StaffDemand
Revolutsaid it expanded the buyback scheme this year in response to demand fromex-employees who wanted to sell part of their stakes. In a statement, thecompany said it had “received interest from a number of former employeeslooking to sell shares, so we extended the buyback program that we startedearlier this year to facilitate this for those who wish to participate.”
The companyhas presented the latest offer as a way to align liquidity options for currentand former staff, even at a discount to the headline valuation attached to theNovember round. The moves follow a broader push to make Revolut’s employeeequity more liquid as its private valuation has climbed sharply in the last 18months.
Banking LicenseUncertainty Lingers
Despite thelofty valuation, Revolut still operates under a restricted UK banking licensein what regulators describe as a “mobilization phase.” During this period,deposits at its UK banking unit are capped at £50,000 in total, and the companyis required to strengthen its risk controls and infrastructure before a full licenseis granted.
Concernsaround globalrisk management have weighed on regulatory approvals, noting that Revoluthas been in the mobilization phase for longer than the typical 12 months. Theextended process has added a note of caution for investors weighing thefintech’s growth trajectory against traditional banks with long-establishedregulatory track records.
Alongsideits banking ambitions, Revolut has been expanding in digital assets and capitalmarkets. In November, thecompany secured approval from CySEC to offer crypto services across 30 EUmarkets, giving it potential access to as many as 450 million Europeans forproducts that include staking and stablecoin features, according to FinanceMagnates.
This article was written by Damian Chmiel at www.financemagnates.com.