Revolut Offers to Buy Back Up to 10% of Shares at $45 Billion Valuation: Report

Revolut recently opened a tender offer allowing it to repurchase up to 10% of its shares from eligible investors, according to sources cited by Bloomberg. The buyback prioritizes early backers and values the company at $45 billion, or $865.42 per share.

Share Buyback and Secondary Sale

Revolut is turning to private share deals to provide liquidity to employees and investors while keeping its plans to go public on hold. The fintech has launched a buyback program and a secondary share sale.

Revolut has also held discussions with Greenoaks Capital about raising around $1 billion in fresh funding at a blended valuation of $65 billion, people familiar with the talks said. Executives are considering whether to expand the round and raise additional capital.

New funds are expected to support the company’s international expansion, including possible plans to seek a full US banking license or acquire a licensed bank.

The use of secondary share sales has grown among large private firms as IPO activity remains limited in the US and Europe. Stripe has regularly conducted such deals, and in February, it valued itself at $91.5 billion through a secondary sale.

OpenAI also used a similar structure, selling stock at a $500 billion valuation while raising funds at lower levels.

Shareholder Control

Revolut made its tender offer available to investors, including Balderton Capital, Index Ventures, DST Global, Ribbit Capital, and Crowdcube. The company has sought to restrict unapproved share sales on outside platforms.

Crowdcube has facilitated more than £40 million in secondary deals over the past 18 months, including Revolut transactions. In 2023, it said some early Revolut investors earned returns of more than £1 million.

Revolut reported $4 billion in revenue last year, a 72% increase, and posted a profit. The company now has more than 60 million customers worldwide.

According to the Bloomberg Billionaires Index, founder and CEO Nik Storonsky’s net worth nearly doubled to $14 billion following the secondary share sale.

Besides the share buyback, Revolut has reportedly given its employees the option to sell shares at a $75 billion valuation. The secondary share sale values each share at $1,381.06, according to an internal memo seen by Bloomberg, and allows staff to offload up to 20% of their holdings.

Read more: Revolut Hits $75 Billion Valuation as Staff Cash Out Big

The transaction has already drawn interest from both new and existing investors. The valuation surpasses the market capitalization of traditional lender Barclays, though the comparison reflects private versus public market pricing.

“As part of our commitment to our employees, we regularly provide opportunities for them to gain liquidity,” a Revolut spokesperson said. “An employee secondary share sale is currently in process, and we won't be commenting further until it is complete.”