Investors in the challenger bank Revolut – which is led by two individuals from Aberdeen – may soon find themselves millionaires following a significant rise in the company’s valuation
Investors utilising the Crowdcube platform are expected to achieve a return of 404 times their initial investment when they sell a fraction of their Revolut shares in the upcoming days.
They purchased each share of the UK-based startup for $2.14, and some are now being given the opportunity to sell for $865.42 each, as reported by The Times. The average amount invested at the time, £2,309, has ballooned to over £900,000.
The London-based fintech company is being steered by two Aberdonians – Martin Gilbert, the founder of Aberdeen Asset Management, who has been at the helm of Revolut since 2020, and fellow alumnus of the University of Aberdeen, John Sievwright, who also serves on its board.
Under their guidance, Revolut has achieved remarkable growth and profitability. In 2023, Revolut reported record annual profits, swinging from a £25 million loss in the previous year to a £438 million profit.
The company’s CEO, Nik Storonsky, highlighted the impressive financial performance, stating:
“Our customer base is expanding at impressive rates, and our diversified business model continues to fuel exceptional financial performance, delivering revenues of over $2.2 billion in 2023 and a record profit before tax of $545 million.”
Initially, the unlisted Revolut permitted only its own employees to cash out when it first revealed a secondary share sale in August. It has since eased the restrictions to allow early investors and former employees to sell some of their shares as well.
In total, more than $1 billion worth of shares are changing hands, with new investors including the Abu Dhabi fund Mubadala, private clients of Goldman Sachs, and the tech investors Coatue Management and D1 Capital Partners.
