Business
Mubadala invests in Revolut: London Fintech achieves valuation of $45 billion
Mubadala invests in Revolut for the first time as it continues its global expansion, achieving an impressive valuation of 45 billion dollars.
Abu Dhabi's state fund Mubadala has acquired a stake in the London-based fintech company Revolut for the first time. This occurred during a share sale in August, which valued Revolut at $45 billion and brought in at least $200 million for co-founder and CEO Nik Storonsky.
The following investors participated in the $500 million stock sale by Revolut employees, according to sources familiar with the transaction: Coatue, D1 Capital Partners, and Tiger Global. The exact scale of Mubadala's investment could not be immediately determined.
Storonsky, who co-founded Revolut in 2015, sold between 200 and 300 million dollars worth of his shares. According to an insider, Storonsky accounted for about half of the total value of the deal, in which thousands of employees also sold shares. The proceeds could help Storonsky further expand his venture capital firm QuantumLight, founded in 2021, which focuses on AI-driven investments and aims to identify promising tech companies.
Before the sale, Storonsky's stake in Revolut was estimated at nearly 8 billion dollars, based on the latest valuation of 45 billion dollars.
Mubadala thereby intensifies its investments in Europe, one of its most active regions for venture capital deals. According to data from PitchBook, Mubadala has participated in at least 28 European deals in the past five years, including Klarna, another major fintech player.
Mubadala's Entry into Revolut Comes at a Time When the Fintech Company is Aggressively Advancing its Global Expansion Strategy. In July, Revolut Received a Long-Awaited UK Banking License, Seen as a Gateway for Further Regulatory Approvals in Key Markets Such as the US. The Approval Was Delayed After the Auditor Raised Concerns that a Significant Portion of Revenue for 2021 Might Have Been Misreported, Before the Issue Was Resolved.
Revolut already has over 45 million customers worldwide, including around 9 million in the UK. It also holds a banking license in the EU and has acquired a license in Mexico this year. In 2023, the company achieved a pre-tax profit of £438 million, after recording a loss of £25 million in 2022.
