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Revolut IPO

Everything you need to know

Investors are speculating that British fintech company Revolut may debut on the stock market at some point this year. Discover key points about the company's potential IPO, including a date, valuation, company history, and recent financials, and learn how to get involved.

UK flag logo
FCA regulated
FSCS logo
Segregated funds
LSE logo
LSE listed

Sometime in 2022

Going public

£24bn+

Valuation

57% YoY

Revenue increase

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Overview of the company’s business model

Revolut was founded in 2015 and has headquarters in London. Through its financial ‘superapp’, the company offers products and services relating to current accounts, currency exchange, foreign exchange, debit cards, insurance, and the trading of stocks, commodities, and cryptocurrencies.

As of 2022, it has 18 million personal users and 500,000 business users across 35 countries worldwide. Revolut facilitates the transfer and exchange of more than 30 in-app currencies, which amount to 150 million transactions per month.

When is Revolut’s IPO date?

The company hasn’t yet announced an IPO date as the process is still underway, but it’s expected to take place at some point in 2022. Co-founder and CEO Nik Stroronsky told Bloomberg that the company is waiting until it achieves “at least a few billion dollars of revenue” each year before it can go public. It’s also not clear which stock exchange it will be listing on, although a London float is likely, given that the company is British and operates primarily throughout the UK.

By entering your email address into the box below, we will notify you when Revolut has listed on its chosen stock market and is available to trade via spread bets and CFDs as a derivative with us, along with other upcoming IPOs for 2022​.

What will Revolut’s share price be?

A share price for the company also hasn’t been revealed yet, as this will follow closer to the IPO date when the company files to go public. Check back to this page for future updates as the year goes on.

What is Revolut’s valuation?

Revolut is touted as the UK’s biggest fintech company with a valuation of over £24bn ($33bn). This valuation came in July 2021 after a fundraising round led by Tiger Global Management and SoftBank, earning $800m from investors, according to The Guardian.

Before this, the company was valued at a mere £4.2bn ($5.5bn) in November 2020, showing a surge of almost six times its original estimation and highlighting the enormous growth of the company.

With a £24bn valuation, it is now worth more than financial services companies that have been listed on the FTSE 100 index for several years, such as Legal & General (£18bn), Aviva (£17bn), and Standard Chartered (£16bn).

How to trade on the IPO

1. Open an account

Choose whether you want to spread bet or trade CFDs​ on our derivative share products. In the meantime, you could practise trading on Revolut’s competitors with virtual funds on a demo account.

2. Register your interest

By entering your email into the sign-up box above, we will notify you when the company has listed on its chosen exchange.

3. Pick a strategy

Choose whether you want to go long (buy) or go short (sell). Please note that some trading restrictions may apply on initial trading.

4. Manage your risk

Learn how to apply stop-loss and take-profit orders on your positions to minimise capital loss as much as possible.

How are Revolut’s financials?

The company reported a 57% increase in revenue between 2019 and 2020, up from £166m to £261m. Gross profit reached £123m, although the company still reported over £200m in operating losses, which can be attributed to administrative costs. According to TechCrunch, the company also made £39m in fair value gains on cryptocurrency assets held on its balance sheet, accounting for around 15% of Revolut’s total income.

When comparing Q1 2020 to Q1 2021, revenue increased 130% year-on-year and gross profit increased by 300%, suggesting that the Covid-19 pandemic has had a positive impact on the business as more and more users switch to online banking and financial services.

Please note that past performance is not a reliable indicator of future results.

Why may investors be interested in this IPO?

Revolut first launched its services in 2015, focusing mainly on free currency exchange, but has since expanded its product offering in a short space of time. The company has effectively taken advantage of the cryptocurrency surge by offering bitcoin and ethereum trading, and it’s likely that it will continue to cater for its audience down the line in order to capture more customers.

The company has broken even twice in its history, first in December 2018 and again in November 2020, according to CNBC. Rather than focusing on quick growth, Storonsky has expressed that profitability and a sustainable business model is more important to the company’s overall goals, aiming to reach full profitability in the near future.

Are there any challenges?

While the company has expanded internationally across countries such as Australia, Singapore, the US, and Japan, the UK still remains its primary market, accounting for over 88% of revenue. This shows that unlike other fintech firms such as Swedish Klarna, which has shown major growth in the US, Revolut may need to work harder to promote its products and services in order to be considered a real competitor in the fintech market.

In January 2021, the company applied for a UK banking license with the vision of offering current account services, as well as overdrafts, loans and deposit accounts, according to The Standard. Although it already offers these services in Lithuania and Poland, this will see the company go up against stiffer competition in the form of other popular UK neo-banks like Monzo and Starling, positioning Revolut as a more mainstream player within the financial industry.

Discover Revolut’s competitors

Wise
- All clients
92%
Long

92% of CMC client accounts with open positions on Wise expect the price to rise.

Nu Holdings
- All clients
100%
Long

100% of CMC client accounts with open positions on Nu Holdings expect the price to rise.

PayPal
- All clients
97%
Long

97% of CMC client accounts with open positions on PayPal expect the price to rise.

SoFi Technologies
- All clients
98%
Long

98% of CMC client accounts with open positions on SoFi expect the price to rise.

Client sentiment is provided by CMC Markets for general information only, is historical in nature and is not intended to provide any form of trading or investment advice – it must not form the basis of your trading or investment decisions.

FAQS

Are any direct competitors of Revolut having an IPO?

Leading fintech firms Monzo (UK), Klarna (Sweden), and Stripe (US) are also reportedly in the process of preparing for an IPO, which could take place at some point in 2022. These will provide direct competition for Revolut when all three companies debut on the stock market. Read further about the upcoming IPOs for Monzo and Stripe.

Is Revolut a unicorn company?

In April 2018, Revolut raised over $250m in a funding round led by venture capital company DST Global, increasing its valuation by 500% to reach $1.7bn. This gave it “unicorn” status, which is when a private company is estimated to be worth over $1bn.

Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

Download our app to trade on-the-go

Download our mobile app for iOS or Android to get started. Once Revolut stock is listed on its chosen exchange, you will be able to spread bet or trade CFDs on our Revolut share price.

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