Revolut Ltd.'s shareholder Schroder thinks the firm is worth 45% more than it was a year ago, which suggests that investors are becoming more interested in the fintech industry.

Global fintech investment fell precipitously in 2023, reaching a five-year low of US$113.7 billion, according per KPMG's Fintech Pulse of the World report. It is commonly anticipated that fintech investment would rebound in this year.

Despite Schroders' relatively tiny position in Revolut, the current write-up in Bloomberg indicates that Revolut's valuation has increased to US$25.7bn, up from US$17.7bn last year, although it is still less than its US$33bn estimate in a 2021 fundraising round. Revolut has advanced significantly over the last year, according to Schroders' annual report, which cited the company's aggressive international development as a major element in the company's reevaluation of its investment.

The investment trust of Schroders Plc reported a £2.45 million (US$3.06 million) write-up for its Revolut position in March. As a result, as of December 31, the share was valued at £7.88 million (US$9.82 million), up from £5.44 million (US$6.78 million) the previous year. This revaluation takes into account Revolut's strong success in spite of worries about how rising interest rates would effect profitability, which has impacted a lot of rapidly expanding financial companies.

The fintech industry and Revolution

December saw the release of Revolut's delayed 2022 accounts, which showed revenue increase to just over $1 billion. Even while the London-based firm is still waiting on a decision on its long-awaited UK banking license, which would allow it to extend its services in its home market, it continues to bring in approximately a million new clients every month.

Revolut declined to comment on the Schroders data; the investment trust holds stakes in a number of technology, scientific, and finance-related businesses. After a funding round last year at a reduced valuation, one of its major assets, UK fintech Atom Bank, saw a 27% write-down. Schroders, however, is still upbeat about Atom Bank's chances going forward and sees the new investment as a sign of confidence in the business's ability to develop and run effectively.

London is home to the global asset management firm Schroders plc, a British corporation. Revolut is a worldwide financial technology and neobanking firm that serves both companies and retail clients. Its headquarters are in London, UK.