Revolut's $75B Valuation Surpasses Traditional Banking Giants

Revolut Ltd. has reached a $75 billion valuation following a months-long share sale, a significant jump from its $45 billion valuation in 2024. The fintech giant secured the funding through a round led by investors including Coatue, Greenoaks, Dragoneer, and Fidelity Management & Research Company, with participation from Nvidia Corp.'s NVentures, Andreessen Horowitz, and other major firms according to Bloomberg. The transaction also allowed current employees to sell their shares for the fifth time, underscoring the company's growth and appeal to institutional investors as reported by Bloomberg.

Revolut's CFO, Victor Stinga, emphasized that the valuation reflects the strength of its business model, which combines rapid customer growth with profitability. The company, which offers digital banking, cryptocurrency trading, and international money transfers, reported a 149% increase in pre-tax profit last year to $1.4 billion. With 65 million customers globally, Revolut aims to expand to 100 million by mid-2027, a goal supported by a $13 billion investment plan to scale operations in 30 new markets. This expansion includes navigating regulatory hurdles in the UK, where CEO Nik Storonsky remains focused on securing a full banking license according to Reuters.

The fintech's valuation now surpasses that of traditional banks such as Barclays and Société Générale, despite its private market status. Storonsky, who relocated to Dubai last year, highlighted the milestone as a step toward building a "global financial and technology leader," noting the company's $10 billion investment commitment over five years, including $3 billion directed to the UK market. Revolut's strategy also includes entering new geographies like Mexico, Colombia, and India, where it has already secured regulatory approvals according to Yahoo Finance.

Analysts have pointed to Revolut's diversified revenue streams-particularly in crypto trading and interest income-as key drivers of its valuation. However, challenges remain, including its reliance on non-traditional banking services and the need to compete with established lenders in consumer credit and mortgages. Despite these hurdles, the company's ability to attract top-tier investors and execute its expansion plans positions it as a formidable player in the global fintech landscape according to Bloomberg.