Lorenzo Chiavarini’s Post

Revolut secures new $45 billion valuation following secondary share sale with major investors as it targets a potential IPO “…Revolut has secured a $45 million valuation via a secondary share sale, despite a wider slump in fintech valuations. The London-based neo-bank, which recently secured a banking license in the UK, has signed agreements with institutional investors over a share sale that significantly boosts the company's valuation…” #neobank #unicorn #valuation #boost Business Insider #informationbanker Informationbanker Revolut

Since the US election, anticipation has been building for a more permissive regulatory environment under Trump 2.0. Having hit a potential trough, capital markets activity is poised for a rebound, fueled by looser monetary conditions and fintech's growing appeal. Notable deals include Capital One $35B acquisition of Discover Financial Services, alongside exits like Airbase ($325M to Paylocity), Tegus ($930M to AlphaSense), and Visible Alpha ($500M to S&P Global). 🦄 Fintech Unicorn Boom 12 new fintech unicorns emerged in 2024, bringing the global total to 325 (private companies valued at $1B+). 📈 2025 IPO Watch Fintech IPO interest is surging. Klarna leads the way, targeting a $15–20B Nasdaq valuation. Stripe, Revolut, and CHIME are rumoured to follow. Chime, a neobank with 38M users and 8.1% market share, rivals industry giants like Wells Fargo. As it readies its IPO, Chime faces the challenge of diversifying revenue and proving profitability. ✅ What This Means: Expect fintech to dominate the M&A and IPO landscape as confidence grows in the sector’s resilience and innovation. And how do you see fintech evolving? #fintech #wealthtech #investments #wealth #familyoffice #VC Source - Robeco

Fintech is looking promising for 2025 if you follow the prognostications of these business leaders: ============ Fintech will reemerge as a hot category with continued positive momentum in multiples and a resurgence in private market deals. —Steve Sloane, partner, Menlo Ventures Fintech will see a resurgence after IPOs from companies like Stripe, Klarna, Chime, and Plaid. VC funding in fintechs cooled after the bubble of 2021, but once these big players go public, we’ll see renewed investment in the space. —Mercury CEO Immad Akhund 2025 will see a greater focus on lending BaaS and embedded finance. —Adam Shapiro, partner and cofounder, Klaros Group Digital banks and wallets are making a comeback, already presenting stiff competition for traditional or legacy financial institutions worldwide, but this year, we will see digital banks outpace them in new customer acquisition. —AstroPay CEO Marc Sacal

𝗪𝗵𝗮𝘁’𝘀 𝗻𝗲𝘅𝘁 𝗳𝗼𝗿 𝗘𝘂𝗿𝗼𝗽𝗲𝗮𝗻 𝗳𝗶𝗻𝘁𝗲𝗰𝗵 𝗜𝗣𝗢𝘀? Tom Matsuda's post today on Europe’s next Fintech IPO potentials raises some great points. Klarna’s anticipated US listing isn’t just a bold move for the company—it’s a litmus test for the whole sector. Why does this matter? Because a successful IPO could reignite investor confidence and open the door to more public market exits. If it falters, the ripple effect could dampen an already cautious market. Here’s what stood out to me: • 𝗧𝗵𝗲 𝗨𝗦 𝘃𝘀 𝗘𝘂𝗿𝗼𝗽𝗲 𝗱𝗶𝗹𝗲𝗺𝗺𝗮. Klarna’s choice reflects the ongoing challenges with European markets • 𝗧𝗵𝗲 𝗽𝗿𝗲𝘀𝘀𝘂𝗿𝗲 𝗶𝘀 𝗼𝗻. The valuation will set the tone for other Fintech players waiting in the wings • 𝗧𝗶𝗺𝗶𝗻𝗴 𝗶𝘀 𝗲𝘃𝗲𝗿𝘆𝘁𝗵𝗶𝗻𝗴. The public market mood will dictate whether this becomes a breakthrough or a cautionary tale The European Fintech scene has huge potential, but public market exits remain elusive. Will Klarna’s IPO pave the way—are we about to see a Fintech IPO revival? Thanks Tom for the comprehensive list! https://lnkd.in/eUE2e4Ek

Growth: Journey to #IPO (or #Strategic Sale) and Beyond The IPO market for #fintech will not stay #dormant forever. As #interestrates moderate and fintechs hunt for #capital, we expect initial public offerings along with strategic sales and other M&A activity to take off. Leading fintechs in all #geographies are known for their intent to go public in the near #future, from Flutterwave in Africa to Klarna in Europe; from Airwallex in Asia-Pacific to Chime in North America. #Investors have changed their tune, singing the praises of #sustainable, #profitable #growth where they once exhorted fintechs to “grow at all costs.” Consequently, the bar has shifted, putting more #pressure on fintechs to tell a longer-term and more comprehensive #equity story. To maximize #valuation for IPO and beyond fintechs need to focus on best practices: ✅ Tell a clear equity #story - Today, investors expect a more comprehensive narrative, an articulate story that clearly lays out the case to underwrite long-term success. ✅ Move when the #time is right - Fintechs that thrive in the new environment will be those that apply a laser focus to unit economics and optimize costs, revenues, go-to-market strategies, risk and compliance capabilities, and partnership models. ✅ Build #compliance muscle - fintechs can prepare for a successful IPO and beyond by taking a robust, end-to-end view of compliance to mitigate the risk and impact of future regulatory actions and give potential partners confidence in the viability of joint efforts. ✅ Prepare to #partner - Fintechs should devote significant leadership attention to partnership strategy more broadly, as we expect significant ongoing opportunities for fintech-bank alignment. 

The fintechs – public and private – that are solving real problems and have strong fundamental unit economics will continue to perform well,” said Nigel Morris, a managing partner at QED Investors. Two of QED’s profitable portfolio companies are San Francisco-based SoFi Technologies Inc. and Brazilian challenger bank Nu Holdings Ltd., or NuBank. SoFi’s shares are up around 47% so far this year, while NuBank’s are up 62%.

Revolut's founder, Nik Storonsky, just made waves in the fintech world by selling shares worth up to $300M, reinforcing his status as one of Europe’s wealthiest tech moguls. This move comes after securing a long-awaited banking license from UK regulators, a step that positions Revolut as a major player in the global financial ecosystem. 🏦 But what does this mean for the fintech industry? As Revolut’s public listing approaches, likely in New York, it signals the growing competitiveness of fintech giants on the global stage. For fintech developers and investors, Revolut's story underscores the importance of innovation, regulatory agility, and strategic timing in a rapidly evolving market. 🌐 Could this be the next turning point for fintech? Only time will tell, but one thing is clear: Revolut is showing us what the future of banking might look like. #Fintech #Revolut #Banking #Finance #Startups #Fintech

FROM PENNIES TO MILLIONS: The Remarkable Rise of Revolut 💸 Revolut’s journey is a masterclass in fintech #innovation, #early-#stage #investing, and the power of retail investors. Here are the key highlights from their extraordinary growth: In 2016, 433 retail investors took a chance on a tiny fintech startup. With an average #investment of £2,152, those early backers are now looking at a 40,000% return—transforming £10,000 into over £4M! Scaling the Unscalable: 2015: Founded with a vision to revolutionize banking. 2016: Raised funds via Crowdcube, valuing the company at just £40M. 2024: Valuation skyrockets to $45B with 45M global customers and £438M pre-tax profit. 💡 Lessons for Aspiring Investors: 1️⃣ Early-stage investing can democratize wealth creation. 2️⃣ Research, patience, and diversification are critical. 3️⃣ The next big opportunity might not come from VCs—it could come from you. Revolut’s story proves that with vision and a bit of risk-taking, retail investors can rewrite the rules of wealth creation. 🌟

NEW: Three years ago, Europe’s fintech sector looked like it was becoming a healthy source of public listings. In 2021, European fintechs raised a total of $28bn across 15 public listings according to Dealroom, thanks in part to some blockbuster IPOs from the likes of money transfer app Wise and property finance platform LendInvest.   But since the funding bubble burst, public markets have been on ice, and European exchanges have been particularly sleepy. And even though we’re seeing signs of life with Klarna filing for a public listing in November, the company chose the US as its destination — a sign that Europe may struggle to hold onto its most valuable fintechs as they scale. With that in mind, I’ve identified the 12 fintechs that are most likely to follow in the buy now, pay later giant's footsteps — here's the shortlist: https://lnkd.in/eAfp2p_q

Tiger Global Management is reported in talks to led the $500 million Revolut share deal We all know that #Revolut, the British-based #fintech giant, is planning a substantial $500 million secondary share deal, but now it seems that it already engaged in discussions with Tiger Global Management to lead it. This new development follows Revolut’s impressive $800 million primary funding round in 2021, also led by Tiger Global and SoftBank Group Corp.. The current deal, focused on a secondary offering, allows many of Revolut's employees to sell their existing shares, offering liquidity without issuing new equity. Founded in 2015 by Nik Storonsky, Revolut has quickly ascended to become a key player in the global fintech space, boasting over 40 million customers. The company reported record earnings of £438 million last year, with revenues nearly doubling to £1.8 billion. Despite a challenging landscape for tech valuations over the past two years, Revolut aims to secure a valuation of at least $40 billion, potentially reaching as high as $45 billion. The proposed share sale comes as Revolut navigates ongoing regulatory and compliance challenges, including a pending application for a UK banking license submitted over three years ago. CEO Nik Storonsky has been vocal about his frustrations with the regulatory delays, even suggesting a reluctance to list on the London Stock Exchange due to the slow process. The company has also faced scrutiny for the release of funds flagged by the National Crime Agency as suspicious, yet it continues to expand its customer base at a rapid pace. Tiger Global’s interest, along with other potential investors, underscores the significant market confidence in Revolut’s business model and growth trajectory. The fintech sector is watching closely, particularly given the broader context of fluctuating tech valuations and the recent funding successes of other digital banks like Monzo Bank, which recently raised nearly £500 million. The article on Sky Media UK in the first comment. Want to stay up to date with the market? Here my newsletter: - Linkedin: https://lnkd.in/d4h8zqKA  - Substack: https://lnkd.in/dzfGJzmW