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Revolut IPO: Everything you need to know

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Axi Team
Everything you need to know Revolut IPO

Revolut’s IPO has been in the talks for a while now. The current market environment might not be the best, but the company reporting its first annual profit eight years after being founded might accelerate things. Revolut is also getting closer to being granted a UK banking license, which would be a big step forward for the fintech company.

Revolut CEO Storonsky previously said that he wants the company to generate a few billion dollars a year before he takes it public. The challenging macroeconomic conditions are creating headwinds, but an IPO in late 2023 shouldn´t be written off entirely just yet.

 

Revolut company stats

Founded 2015
Headquarters London, United Kingdom
Number of employees 6,000
Revenue 2021 $636 million
Stock Exchange London Stock Exchange
Potential Valuation $33 billion

Source: Bloomberg

 

How does Revolut make money?

Revolut was founded in London in 2015 by Nikolay Storonsky and Vlad Yatsenko and still maintains its headquarters there. The company offers a variety of financial services primarily aimed at retail customers and smaller companies - ranging from multi-currency bank accounts to debit cards, currency exchange, stock trading, and cryptocurrency investing.

Revolut´s revenues come from interchange fees, interest, and fees from its services, such as the fees for its premium products.

Interchange revenues are generated from the transaction fee that Revolut imposes on its users. Revenues generated from interest are on the rise now that interest rates are increasing. At the same time, Revolut offers a variety of packages for its premium products, such as Revolut Plus, Revolut Premium, and Revolut Metal.

With Europe getting saturated with neobanks, Revolut is already working hard to expand into the United States, as well as Brazil, Mexico, and India. The firm recently announced it has surpassed 25 million users worldwide.

If Revolut is granted a UK banking license, it could help accelerate its lending activity and boost incomes made from this revenue source.

 

The IPO: When, where and what to expect

Revolut’s last valuation was done in 2021 when the fintech firm raised $800 million in a funding round led by SoftBank and Tiger Global. This represented a massive increase from 2020 when Revolut was valued at only $5.5 billion.

While there is no date yet for the Revolut IPO, a listing on the London Stock Exchange (LSE) seems most likely, as the company has its headquarters in the UK, which is also its most important market.

The recent 33 billion valuation makes Revolut the UK´s biggest fintech company and can even put some of the well-established names in the financial industry to shame.

The company recently announced revenues of 636 million GBP for 2021 and a pre-tax profit of 59.1 million GBP. This was a milestone for Revolut as it turned a profit for the first time in 8 years, and makes an IPO more feasible.

That being said, the company might prefer to wait until it has cleared another major hurdle - getting a UK banking license - before it goes public.

 

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 an important milestone for a company looking to raise capital and 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’s listed on a specific exchange and prices from the exchange become available to our liquidity providers.

  1. Login to your live MT4 trading account (sign up with Axi if you don’t have one)
  2. Navigate to market watch, right-click, and select ‘show all’. Search for Revolut.
  3. 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.



Axi Team

Axi Team

The Axi team is full of people with decades of financial industry experience and knowledge of almost every aspect of trading. The Axi Team blog, in addition to regular posts from our daily market analysis contributors, is a place to share wider insights and ideas. In this section, you’ll find posts about everything from Forex education and helpful hints for new traders to product updates and important market announcements. 


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