Revolut IPO: Everything you need to know
Revolut's IPO has been a hot topic for some time now. While the outlook for IPOs in 2024 is brighter than in 2023, thanks to improved macroeconomic conditions and pent-up demand, external factors such as interest rates and geopolitical conditions may continue to impact investor sentiment. With 45 million users worldwide and solid financial performance, the company may soon be going public.
Revolut was established in 2015 in London by Nikolay Storonsky and Vlad Yatsenko and is licensed to provide banking services in thirty different countries. In 2023, following a three-year back and forth with regulators, it secured a much-awaited UK banking license, allowing it to expand its deposit protection and mortgage offerings in the UK and potentially making regulatory approvals in other markets easier.
Revolut company stats
| Founded | 2015 |
| Headquarters | London, United Kingdom |
| Number of employees | 8.125 |
| Revenue 2023 | $2.2 billion |
| Stock Exchange | Nasdaq or London Stock Exchange |
| Potential Valuation | $45 billion |
Source: Bloomberg
How does Revolut make money?
Focusing on both individuals and businesses, Revolut generates revenue through multiple channels. Earnings originate from sources including card transaction fees, subscription fees, interchange rates, cryptocurrency trading, and wealth management solutions such as savings vaults and stock trading.
The company also generates revenue from credit products like personal loans, overdrafts, and business accounts, which incur monthly charges and payment fees.
As the European market has seen a rapid proliferation of neobanks over the past few years, leading to a highly competitive landscape, Revolut continues to expand aggressively in international markets; after expanding into the US, Brazil, Australia, Singapore, Japan, and New Zealand, the company plans to launch in additional countries, including India and Mexico.
Financial Performance and Growth
Revolut’s revenue surged to $2.2 billion in 2023, accompanied by a record pre-tax profit of $545 million. This substantial growth from the previous year was driven by strong performance across all three core revenue streams: subscriptions, foreign exchange, and wealth services.
More than 45 million users in 38 countries are using Revolut. The firm gained 12 million new consumers in 2023 alone, with 70% of these new customers acquired through referrals. Year-over-year customer balances increased by 38%, while monthly transactions surged by 73%, indicating an engaged customer base and increased use of Revolut's services. To support this rapid growth, the company expanded its workforce by 38%, reaching over 8,150 employees.
The IPO: When, where and what to expect
While there is no set date in sight, an IPO is expected to take place in 2025.
Revolut, now one of Europe's most valuable startups with a $45 billion valuation following its latest employee share sale, saw employees liquidate a portion of their holdings to key buyers including Coatue, D1 Capital Partners, and Tiger Global. This sale marks a significant jump from its previous $33 billion valuation in 2021.
Revolut, unlike its fintech competitors, has not needed to raise funds in recent years, avoiding the significant valuation drops experienced by many of its peers due to high interest rates.
However, it is still unclear where Revolut will list. Initially, the London Stock Exchange (LSE) was the most likely contender due to Revolut's UK headquarters and core market. The company then expressed interest in the Nasdaq in New York, citing its greater liquidity. Revolut officials have recently acknowledged the City's competitiveness as a commercial hub and hinted at the possibility of a London IPO.
3 steps to trade Revolut IPO with Axi
An Initial Public Offering (IPO) is an investor’s first chance to gain exposure to an organisation. An IPO is a significant milestone for a company looking to raise capital, as well as an opportunity for investors to get involved in a hopefully growing business.
With Axi, you can get exposure to Revolut's IPO as soon as it is listed on a specific exchange and prices from the exchange become available to our liquidity providers.
- Login to your live MT4 trading account (sign up with Axi if you don’t have one)
- Navigate to market watch, right-click, and select ‘show all’. Search for Revolut.
- Choose your position and size and go long or short on share prices. Don’t forget to set risk management tools like a stop loss and take profit order.
Sources: Bloomberg
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The data is sourced from third-party providers. This information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any trading strategy. It has been prepared without taking your objectives, financial situation, or needs into account. Any references to past performance and forecasts are not reliable indicators of future results. Axi makes no representation and assumes no liability regarding the accuracy and completeness of the content in this publication. Readers should seek their own advice.
