Revolut seeks $115 billion valuation, plans multiple secondary transactions before IPO

According to sources familiar with the matter, London-based digital bank and financial super app Revolut is quietly seeking a round of secondary equity transactions with a target valuation of $115 billion. If concluded, this valuation would surpass Barclays and Deutsche Bank, and approach the size of BNP Paribas.

Founded in 2015 and led by CEO Nik Storonsky, Revolut plans to conduct multiple rounds of secondary transactions before its IPO to provide liquidity for internal shareholders while assessing the market's tolerance for the company's valuation. Storonsky has stated that an IPO is still at least two years away.

Based on current revenue of $600 million and profits of $2.3 billion, the $115 billion valuation implies a price-to-earnings ratio comparable to high-growth tech companies. If the transaction goes through, Storonsky's stake would be worth at least $36 billion, placing him among the world's wealthiest fintech founders.

Previously valued at $75 billion, Revolut was already Europe's most valuable private tech company. Now, if it reaches $115 billion, it would join the ranks of top global financial institutions, setting a high bar for its future IPO and signaling investors' optimism about the company's valuation. (Bloomberg)