TriplePoint Venture Growth, a US-based tech investor, has adjusted its valuation of Revolut, marking down its stake by 18% at the year’s end, indicating a new valuation of $23 billion, a significant drop from the previous $28 billion.
This move represents the second adjustment by TriplePoint, following an earlier reduction when Revolut, previously hailed as Europe’s most valuable fintech at a $33 billion valuation, faced skepticism over its valuation after securing $800 million in funding led by SoftBank. Other investors, Schroders and Molten Ventures, also recorded substantial writedowns on their Revolut stakes last year.
Despite the fintech sector experiencing a valuation rebound—highlighted by Monzo’s recent valuation increase—Revolut’s ongoing delay in obtaining a UK banking license, a process initiated in January 2021, has contributed to investor caution.
The Bank of England’s hesitation, driven by regulatory concerns, has necessitated Revolut to streamline its shareholder structure and address accounting issues, efforts which have reportedly seen progress.
Amid these challenges, Revolut has voiced frustration with the UK’s regulatory environment, with plans to pursue a public listing potentially favoring Wall Street over London. Despite these hurdles, Revolut continues to push towards obtaining its banking license, with new UK leadership emphasizing a committed path forward.
In the meantime, the company reported a 45% revenue increase in 2022, though it also recorded a loss, underscoring the high stakes and potential for growth in the competitive fintech landscape.