Revolut, a shining star in the UK’s fintech landscape, is rapidly gaining attention, especially from investors. The company’s potential secondary share sale, which could catapult its valuation to $60 billion, is currently in the talks. This marks a $15 billion increase from its valuation just six months ago.
Vytautas Danta, Revolut’s Deputy CEO, told TFN exclusively earlier in January: “Revolut has 10,000 employees globally, with 200 in Vilnius, and aims to open 1 million new accounts monthly. They offer banking services across Europe, with local IBANs in France, Ireland, Spain, Germany, and Romania. Revolut’s main income is commission fees, generating €2 billion gross income in 2023.”
While 2024 figures aren’t yet public, industry experts predict Revolut will report approximately $1 billion in profit before tax for 2024, nearly double the $545 million reported in 2023. This milestone could make Revolut even more attractive to public market investors.
Expanding beyond digital banking: Revolut’s new features
The company has expanded its services recently, launching a commercial real estate lending unit and a private lending business. Revolut holds a European Union banking license and provides banking services in the U.S. through partnerships with Sutton Bank and Cross River Bank. Its CEO has also indicated the company is pursuing an American banking license.
As Revolut’s announcement says, “The goal is to offer a fully digital mortgage product that is the fastest on the market, aiming to issue instant approval in principle and final offer in one business day subject to asset valuation and any necessary checks. Mortgages will form part of the comprehensive credit offering Revolut is looking to build, with the company also exploring overdrafts.”
Danta told us, “Revolut currently offers consumer credit products like credit cards and consumer lending. We also plan to start offering mortgages in Lithuania and then expand to other countries.” The company pushes fintech boundaries while pursuing a “super app” strategy by continuously adding more financial services.
In December, the company announced new anti-fraud security measures for its cryptocurrency customers beginning this year. Danta noted that Revolut leverages advanced analytics and machine learning to detect better and prevent fraud. Their proprietary fraud detection system uses AI to analyse over 590 million customer transactions monthly. He highlighted, “Implementing these AI-powered fraud prevention tools has helped decrease fraud by 60% on the user side.”
In November, Revolut announced plans to provide UK customers with new trading products and features upon receiving a UK trading license. That same month, the company revealed it was extending its cryptocurrency exchange to Europe after its UK launch. Danta stated: “Revolut offers the ability to trade and invest in cryptocurrencies as part of their app and services. We use gamification techniques, such as providing crypto training courses where users can earn rewards in the form of crypto coins.”
The company plans to introduce an in-app AI assistant in 2025 to enhance user experience and provide personalised financial guidance, followed by branded ATMs (coming to Spain in early 2025), and improved Revolut Business capabilities. As the announcement explains, “In 2025, Revolut Business will bring its first business credit product to Europe and aims to offer one of the top business savings rates in all EU markets next year. Revolut Business also plans to help companies manage their restaurant and store operations with Revolut Kiosk, for which it is exploring biometric payments, and plans to continue to push its Revolut Pay offering with multiple payment methods, including, in future, Buy Now Pay Later.”
Is an IPO coming sooner than expected?
While Revolut is expected to go public by 2026, recent developments might accelerate this timeline. Plus, Revolut’s valuation now surpasses established banks like Societe Generale and Barclays. This positioning as a fintech leader could create a compelling narrative for an IPO pitch.
Industry insiders suggest the company’s leadership prefers New York over London for the listing, despite the UK government’s efforts to retain high-profile listings. The currently subdued global IPO market could benefit Revolut if it can position itself as a standout offering.
Though Revolut has not officially announced an IPO, its rapid valuation growth, service expansion, and strong financial performance suggest It is preparing for a potentially earlier public offering. However, the company will likely wait for optimal market conditions and complete key strategic initiatives before deciding on timing.
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