Revolut CEO Nikolay Storonsky to Cash in Part of His Stake

British fintech company Revolut’s CEO, Nikolay Storonsky, plans to sell part of his multibillion-dollar stake in the company as part of a $500 million share sale.

Sky News reports this move, following an earlier report by the Financial Times that Revolut is working with bankers on this share sale, which includes shares held by employees. The company could be valued at more than $40 billion.

Details on Stake and Sale by Nikolay Storonsky:

The exact size of Storonsky’s stake in Revolut is unclear, as is the scale of his planned sale. The amount he will dispose of depends on the valuation Revolut attracts from new investors and the company’s final allocation decisions. Revolut declined to comment on the matter when contacted by Reuters.

Company Financials and IPO Plans:

Revolut has signaled its intention to go public, although interim Chief Financial Officer Victor Stinga declined to provide a timeline for an IPO earlier this month.

In 2023, Revolut achieved a record pretax profit of £438 million ($553.8 million) due to strong user growth and increased interest-related income, positioning itself as Europe’s most valuable startup.

Industry Context:

Britain’s fintech industry has recently experienced a funding crunch. Investors are becoming more skeptical of high pandemic-era valuations and pressuring companies to achieve profitability.

Revolut has applied for a UK banking license despite this challenging environment but is awaiting approval three years later.