The Revolut valuation cut by Molten Ventures reflects the difficult conditions facing fintechs.

Revolut, the London-based challenger bank, has suffered another blow to its valuation as Molten Ventures, a tech-focused investment firm, has chopped the valuation of its stake in the company by 40%. This comes after Schroeder, a global asset manager, devalued Revolut by 46% in April, and TriplePoint Venture Growth cut its valuation by 15% a month earlier.

As a result, Revolut’s valuation has plummeted from a peak of $33 billion to approximately $17.7 billion and $28 billion, respectively.

Molten Ventures cited a challenging investment environment, particularly in high-growth technology markets, and increased interest rates as reasons for the reduction in the value of its portfolio. The firm reported a group loss of £243 million, contrasting with a profit of £301 million in the previous fiscal year. Similarly, Schroders’ investment trust reported a decline of 41% in its holdings. (FINANCE MAGNATES)

Revolut is also facing difficulties in obtaining a banking license in the UK and has been struggling with verifying a significant portion of its annual revenue.

The fintech industry as a whole is experiencing devaluations, with Klarna, a Swedish ‘buy now, pay later’ credit provider, seeing its valuation plummet from $45.6 billion to $6.7 billion in a year.

Furthermore, global fintech funding has significantly decreased in 2022, according to data from Innovative Finance and CB Insights.

These challenges highlight the current struggles faced by Revolut and other fintech companies in an increasingly competitive and changing market.

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