Revolut is enduring another blow to its valuation as the tech-focused investment firm, Molten Venture has written down its stake in the London-headquartered challenger bank. According to Molten’s financial result for the year ended March 2023 released today (Thursday), the company’s stake in Revolut now stands at £54.5 million, which is down 40% from £91.3 million a year earlier.

Investors Write Down Stake in Revolut

Earlier in April, the global asset manager, Schroeder felt compelled to devalue Revolut by 46%, slashing the fintech company’s valuation by approximately $15 billion as a result. The depreciation follows a reduction of 15% applied a month earlier by US-based TriplePoint Venture Growth.

Both moves shot down Revolut’s valuation to about $17.7 billion and $28 billion, respectively, representing a dramatic fall from a peak of $33 billion which Revolut achieved in July 2021 after raising $800 million from a funding round.

Molten reduced its stake in Revolut as the venture capital firm reported a group loss of £243 million in its latest financial report when compared to a profit of £301 million from the preceding fiscal year. Schroders’ investment trust recently reported a decline of 41% in its holdings at the end of 2022.

“The past year has delivered a significant shift in the investment environment, particularly in the high-growth technology markets, as interest rates were increased to combat global inflationary pressures,” Martin Davis, Molten’s CEO, explained in the financial report. “This challenging market backdrop has led to a reduction in the value of our portfolio, and our focus for this year has been centered on the active management of our investments while adapting our business to respond positively in the face of market pressures.”

Revolut Faces Difficulty as Global Fintech Funding Slumps

Meanwhile, the reductions of stakes in Revolut are at a difficult period for the fintech company. The firm, which began as a cross-border money transfer platform and subsequently expanded into consumer loans, crypto trading and pet insurance, is struggling to secure a banking license in the UK.

In March, Revolut reported its first full year of profit from business activities in the fiscal year of 2021 after missing several timelines to file the financial results for the period. However, external auditor BDO said it could not independently verify roughly £477 million of the firm’s annual revenue.

Across the industry, other fintech companies are experiencing devaluations. For instance, Swedish ‘buy now, pay later’ credit provider, Klarna, saw its valuation plummet from $45.6 billion to $6.7 billion within a year despite a rise of 21% in its revenue. Moreover, global fintech funding shrank significantly in 2022, according to data from Innovative Finance and CB Insights.

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