(Reuters) – The CEO of British financial technology firm Revolut, Nikolay Storonsky, will cash out part of his multi-billion pound stake in the company as part of a $500 million share sale, Sky News reported on Sunday.
The Financial Times reported last month that the digital finance app is working with bankers on a share sale, including stock held by employees, that could value it at more than $40 billion.
The size of Storonsky's stake in the company is unclear, the report added, and the scale of any sale would depend on the valuation Revolut can attract from new investors, as well as the company's final allocation decisions.
Revolut declined to comment when contacted by Reuters.
The company has signaled its intention to go public, but its interim chief financial officer, Victor Stinga, declined earlier this month to comment on any timeline for an IPO.
Revolut posted a record pre-tax profit of £438 million ($553.8 million) in 2023 thanks to strong user growth and rising interest-related revenue, as it looks to cement its place as Europe's most valuable startup.
<img src="https://technicalterrence.com/wp-content/uploads/2024/07/Revolut-CEO-to-sell-part-of-stake-in-500m-share.jpg" title="© Reuters. Nikolai Storonsky, founder and CEO of Revolut, speaks during the Web Summit, a technology conference, in Rio de Janeiro, Brazil, May 2, 2023. REUTERS/Pilar Olivares/File Photo” alt=”© Reuters. Nikolai Storonsky, founder and CEO of Revolut, speaks during the Web Summit, a technology conference, in Rio de Janeiro, Brazil, May 2, 2023. REUTERS/Pilar Olivares/File Photo” rel=”external-image”/>
Britain's fintech industry has faced a funding crunch in recent years as investors have grown more skeptical of sky-high pandemic-era valuations and put pressure on companies to become profitable.
Revolut has applied for a banking license in the UK, but three years later it is still waiting for approval.
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