Revolut, the top neobank in the UK, is allegedly preparing plans to allow its staff members to cash in on their bank shares. Revolut intends to sell $500 million worth of stock.

Morgan Stanley is anticipated to be contacted in order to arrange for the potential stock offering, which is anticipated to occur later in 2024. Revolut wants to limit the share sale to workers solely and does not intend to raise additional funds as part of this transaction.

Revolut's CEO, Nik Storonsky, is reportedly adamant that the company's worth equal the US$33 billion it was given at its initial fundraising round in 2021.

When official numbers are revealed later in the year, Revolut's revenue for FY2023 is predicted to quadruple to £1.7 billion (US$2.15 billion). The fintech company is optimistic that its value will remain unchanged.

The fact that Revolut currently has over 40 million customers only serves to reinforce this optimism. In fact, well-known Revolut investor Schroder thinks the neobank's worth has increased by 45% over the previous year.

Can Revolut reach its 2021 valuation?
Reaching their 2021 valuation of US$33 billion would be a noteworthy accomplishment for Revolut.

Following extended periods of lockdown and the release of stockpiled capital reserves onto the market, venture capital activity exploded, causing values to leap to previously unheard-of heights in the immediate post-COVID-19 investment landscape.

Valuations for many fintech companies increased dramatically during this period, but when the markets steadied in the next two years, they dropped to more stable levels.

Revolut is certain that its growth rate has been significant enough to justify an equally high value, which is why it is seeking to match its 2021 valuation.

Nor is its confidence in accomplishing so irrational. Since its establishment in 2015, the fintech has grown to become the top neobank in the UK, surpassing competitors like Monzo and Starling Bank in terms of annual revenue.

Revolut has made it apparent that it wants to develop a mobile "super app" with its industry-leading digital-first products. The company expects to roll out mobile data capabilities following the introduction of its eSIM in early 2024.

As part of its effort to expand the Revolut brand outside banking services, the company released eSIM, making it the first financial institution in the UK to provide data subscriptions.

Furthermore, Revolut has been waiting more than three years for its complete UK banking license when it made its most recent stock offering.

Neobank has introduced a number of innovative initiatives to improve the client experience as it pursues approval, including as its sophisticated AI function that guards against credit card fraud.

"We've invested heavily in the product to ensure that customers can continue to spend and send their money safely," Revolut Head of Fraud David Eborne stated during the product's debut. For instance, an increasing number of institutions are severely restricting or banning card payments to cryptocurrency and investing websites."