FinTech: Top Investor Schroders Chops Revolut’s Valuation By $15B

April 24, 2023 | FinTech, News

The revised valuation of Revolut was disclosed in a filing by Schroders Capital Global Innovation Trust.

Schroders Capital Global Innovation Trust has written down the value of its stake in UK fintech firm, Revolut Ltd, by 46% in its 2022 results, reflecting investor caution in the sector. The trust, a faithful Revolut investor has cut the value of its stake in Revolut to £5.4m ($5.8m) from £10.1m a year earlier. (Yahoo Finance)

The writedown follows a report by the Telegraph last month that TriplePoint Venture Growth BDC Corp. had lowered the value of its stake in Revolut by 15%.

Despite reporting its first annual profit in 2021, Revolut’s auditor was unable to satisfy itself on almost three-quarters of its revenue in that year.

In dollar terms, Schroders’ action values Revolut at $17.7 billion, a heavy cut from the $33 billion valuation following a funding round in July 2021.

“We do not engage in speculation on our valuation,” Revolut said in an emailed statement to Bloomberg. “Since our last funding round, in which we were valued at $33 billion, Revolut has continued to perform strongly in all its markets, has continued to hire and expand, and reported its first full year of profitability.”

However, it may be noted that investment in the UK’s fintech industry decreased from $22 billion to $17 billion in 2022 due to factors such as higher interest rates, inflation, and a decrease in valuations, which dampened investor interest. Therefore, market realities could also have had a role in the evaluation of its stake in Revolut by Schroders.

Related Story: Revolut’s Response To Audit Report Irks Both Its Board And Accounting Fraternity

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