Investment Tagline: Leading global neo-bank democratizing financial services with 35+ million customers across 38 countries

ABOUT REVOLUT

Revolut is a leading global neo-bank that simplifies personal finances through its mobile app. Launched in 2015 from London by Nik Storonsky and Vlad Yatsenko, the platform has grown from a simple currency exchange app into a comprehensive financial services platform serving over 35 million customers across 38 countries in Europe, Asia, and the Americas. The platform offers multi-currency accounts with linked debit cards, enabling seamless currency exchange, international transfers, and budgeting, plus wealth management products including stock and cryptocurrency trading introduced in August 2019.

The company achieved break-even in November 2020 and generated $445 million in revenue by 2022 (CAGR of 115% since 2019). With 2,500+ employees and explosive user growth from 6 million in 2019 to over 35 million today, Revolut's valuation has grown 56x from $800 million in 2017 to $45 billion in August 2024. Notably, the company rejected a $12 billion acquisition offer from Microsoft in April 2021, demonstrating strong conviction in independent growth potential and positioning itself as one of Europe's most valuable fintech companies.

MAIN SOLUTIONS/PRODUCTS

KEY INVESTMENT FEATURES

• Exceptional User Growth: Revolut serves over 35 million customers across 38 countries, up from less than 100,000 in December 2015, with 39% of subscribers making monthly transactions. The platform's customer acquisition rate exceeds European and American peers, with 6.2 million monthly active users conducting most transactions within the Revolut ecosystem, creating strong network effects.
• Strong Revenue and Profitability: Revenue increased 10x from 2019 to 2022, reaching $445 million with a CAGR of 115%. The company achieved break-even in November 2020 and operates profitably with ARPU of $3, surpassing WhatsApp ($2.8), Snapchat ($1.7), and Reddit ($0.5). Growth was driven by 54.6% ARPU CAGR, primarily from wealth management services.
• Valuation Momentum: The company's valuation grew 56x from $800 million in 2017 to $45 billion in August 2024, with the Caplight valuation at $55.3 billion representing a 23% premium. Revolut rejected Microsoft's $12 billion acquisition offer in 2021, demonstrating management conviction in creating independent value.
• Premier Investor Backing: Revolut has raised $1.9 billion from top-tier investors including SoftBank, Tiger Global Management, DST Global, TCV, Dragoneer, Index Ventures, Balderton Capital, and Ribbit Capital—representing the "who's who" of tech investing with proven track records in Facebook, Netflix, Airbnb, and other category leaders.

MARKET OPPORTUNITY

Revolut operates in a $4.9 trillion total addressable market, split between Personal ($3.1 trillion) and Business ($1.8 trillion) segments. In the Personal space, Retail banking and Payments represent $1.3 billion and $800 million opportunities, while Wealth and Trading (including crypto) represents $300 billion. On the business side, SME banking represents $1 trillion, with Merchant acquiring and Salary advance adding $500 billion and $300 billion respectively.

COVID-19 accelerated the shift to digital financial services, with Revolut nearly tripling its user base during the pandemic from 56 million in 2019 to 150 million by 2022. The broader fintech market shows sustained growth with social media users reaching 4.8 billion in 2023 and daily engagement increasing from 90 minutes to 147 minutes between 2012 and 2022, demonstrating behavioral shifts toward mobile-first financial services.

STRATEGIC ADVANTAGES

Technology Advantages: Revolut's mobile-first platform democratizes financial services with a Net Promoter Score of 77, dramatically exceeding traditional banks (often negative). The platform's wealth management products and cryptocurrency trading create powerful cross-selling opportunities, with most transactions within the Revolut ecosystem increasing stickiness. Achievement of break-even in November 2020 demonstrates superior unit economics compared to growth-at-all-costs competitors.

Distribution Advantages: Revolut's freemium model drives viral adoption with 35+ million customers creating network effects. Banking licenses in the UK and Lithuania enable pan-European operations, while US banking license application signals aggressive international expansion. Strategic backing from SoftBank, Tiger Global, and DST Global provides capital and expertise. The diversified revenue model across subscriptions, wealth management, business accounts (500,000+ SMEs), and platform fees reduces dependency on single revenue streams while operating across 38 countries globally.

VALUATION ANALYSIS

Revolut's valuation grew 56x from $800 million in 2017 to $45 billion in August 2024. The Caplight valuation of $55.3 billion represents a 23% premium to the last primary round. At the August 2024 valuation, Revolut trades at an EV/Revenue multiple of 7.0x with a growth-adjusted multiple of 0.35x, significantly below peers like Afterpay (0.54x) and Square (1.07x), making it attractively priced relative to growth rates.

The company's rejection of Microsoft's $12 billion acquisition offer in April 2021 proved prescient, achieving a 3.75x higher valuation within three years. Compared to fintech unicorns like Stripe ($95 billion), Klarna ($46 billion), and Robinhood ($40 billion IPO), Revolut's valuation appears reasonable given its 115% revenue CAGR, profitability achievement, and 35+ million customer base with strong unit economics. Total capital raised of $1.9 billion provides substantial runway for continued expansion.

MANAGEMENT TEAM

Nik Storonsky, Co-Founder and CEO: Nik founded Revolut in 2015, bringing extensive financial markets experience from derivatives trading at Lehman Brothers and Credit Suisse, where he traded over $2 billion across options, swaps, and FX instruments. He holds an M.S. in Applied Physics and Mathematics and an M.A. in Economics, and has transformed Revolut into a comprehensive financial services platform serving over 35 million customers globally.

Vlad Yatsenko, Co-Founder and CTO: Vlad co-founded Revolut with deep technical expertise from software engineering roles at UBS and Deutsche Bank. He holds an M.S. in Computer Science and has built Revolut's scalable technology architecture supporting millions of daily transactions across multiple currencies with industry-leading reliability.

SELECT INVESTORS

Revolut has backing from premier fintech investors including SoftBank, Tiger Global Management (ranked #1 in 2021 global deal participation with 143 rounds totaling $26 billion), DST Global, TCV (early investments in Facebook and Netflix), Dragoneer Investment Group (32 IPO exits including Airbnb, DoorDash, Uber), Index Ventures, Balderton Capital, Lakestar, and Ribbit Capital. This investor syndicate represents combined assets under management exceeding $400 billion and proven track records in Credit Karma, Nubank, Brex, Coinbase, and Stripe, providing strategic value beyond capital for scaling global fintech platforms and executing successful public market exits.

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