TriplePoint Venture Growth, a US tech investor, reduced the value of its stake by 18% at the close of last year, according to company accounts cited by Yahoo Finance. This adjustment suggests that Revolut's valuation now stands at USD 23 billion, a decline from USD 28 billion recorded a year prior.
This marks the second occasion TriplePoint has devalued its internal assessment of Revolut, which reached a peak valuation of USD 33 billion. The scepticism regarding this valuation emerged in 2021 when TriplePoint initially devalued its stake by 15%. Overall, these successive reductions indicate a 30% decrease in Revolut's value since it attained the status of Europe's most valuable fintech company following a USD 800 million investment, which included backing from SoftBank.
Other investors, including Schroders and Molten Ventures, have also depreciated the worth of their stakes in Revolut, with reductions of 46% and 54% respectively recorded last year according to Yahoo. Despite a general resurgence in tech valuations, as evidenced by competitor Monzo securing a GBP 4 billion valuation, TriplePoint's decision to downgrade Revolut's worth underscores concerns regarding the prolonged absence of a UK banking license.
TriplePoint's Chief Investment Officer attributed these downgrades to the elapsed time since Revolut's last fundraising efforts. He highlighted that previous financing rounds occurred during peak periods for valuation multiples in the fintech sector, unlike the current landscape.
Revolut's application for a banking licence with the Bank of England's Prudential Regulation Authority in January 2021 remains pending at the time of writing. Reports surfaced in 2023 indicating potential rejection due to audit-related concerns. However, no formal notice has been issued, suggesting ongoing efforts by Revolut to address regulatory requirements, such as simplifying its shareholder structure and improving financial transparency.
Revolut's CEO criticised the regulatory process in Britain, citing 'extreme bureaucracy,’ and hinted at considering Wall Street over London for a potential public listing. Despite these challenges, Revolut reported a revenue increase of 45% to GBP 922.5 million in 2022. However, it also incurred a GBP 25.4 million loss during the same period. Yahoo Finance further reports that a spokesperson for Revolut declined to comment on the investor valuations and affirmed that the licence application process is ongoing.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now