Abu Dhabi's sovereign investor Mubadala has made its first investment in Revolut, the London-based fintech, participating in a $500 million share sale in August 2024 that valued the company at $45 billion. Founder and CEO Nik Storonsky sold $200-300 million worth of shares in the deal, which also allowed employees to sell $500 million in shares. Mubadala’s investment underscores its focus on European ventures, particularly in fintech, as it joins other high-profile investors like Coatue and Tiger Global. Meanwhile, Revolut continues its global expansion, securing key regulatory licenses and growing its customer base to over 45 million.

Mubadala Acquires Stake in Revolut Amid $45 Billion Valuation

Initial Stake in Revolut
Abu Dhabi’s sovereign fund, Mubadala, has taken a stake in Revolut for the first time, marking a significant entry into one of Europe’s most prominent fintech firms. Mubadala joined a share sale in August 2024, which secured Revolut a valuation of $45 billion. The transaction allowed Mubadala to become part of an elite group of investors in the company.

Part of a $500 Million Employee Share Sale
The sale involved $500 million worth of shares sold by Revolut employees, offering an opportunity for staff to cash in on their stakes. Mubadala was joined by other notable investors such as Coatue, D1 Capital Partners, and Tiger Global, reinforcing the attractiveness of Revolut's equity to major global players.

Nik Storonsky's Strategic Sale of Shares

Founder Sells Significant Stake
Nik Storonsky, who co-founded Revolut in 2015, sold between $200 million and $300 million worth of his shares as part of the same transaction, according to sources familiar with the deal. Storonsky’s sale represented about half of the total $500 million employee share sale.

Funding for Venture Capital Initiative
Storonsky’s share sale could serve as a financial boost for his venture capital fund, QuantumLight, which he founded two years ago. The fund focuses on identifying emerging technology winners through AI-driven investing. Storonsky’s reduced stake in Revolut follows his long-standing ambition to nurture tech startups through this proprietary platform.

Mubadala's Increasing Focus on Europe

European Ventures at the Forefront
Mubadala's investment in Revolut underscores its growing focus on European markets. Europe ranks as Mubadala’s second-most active region for venture capital deals, following North America. According to data from PitchBook, Mubadala has participated in at least 28 European deals over the last five years, making up more than 20% of its global transactions.

Previous Fintech Investments
Mubadala’s involvement in Revolut is part of its broader interest in the fintech space, having previously invested in Swedish fintech giant Klarna. The Revolut investment further strengthens its position in the rapidly evolving financial technology sector.

Revolut's Aggressive Global Expansion

UK Banking License Secured
Revolut continues to pursue an aggressive international growth strategy, recently securing a long-awaited UK banking license in July 2024. This regulatory approval is expected to enhance Revolut's ability to expand into key markets, including the United States, and strengthen its global financial standing.

Overcoming Regulatory Challenges
Despite delays caused by an auditor's warning that its 2021 revenues may have been "materially misstated," Revolut successfully resolved the issue, allowing it to move forward with its licensing plans. The fintech’s ability to overcome these regulatory challenges is critical to its ongoing expansion efforts.

Revolut’s Financial Performance and Global Reach

Strong Financial Growth
Revolut reported pre-tax profits of £438 million in 2023, a dramatic turnaround from a £25 million loss in 2022. This financial success underpins its aggressive expansion, with more than 45 million customers worldwide, including roughly 9 million in the UK.

International Banking Licenses
In addition to its UK banking license, Revolut holds an EU banking license from Lithuania and recently received approval to operate in Mexico. These licenses are essential as the company continues to establish itself as a global fintech leader.

Notable Investors in Revolut

SoftBank's Absence from the Latest Sale
Interestingly, Japanese investor SoftBank, which had participated in previous Revolut funding rounds, did not take part in this latest transaction. SoftBank had been forced to relinquish its priority class of shares as part of Revolut’s efforts to comply with UK regulatory requirements during its pursuit of a banking license.

Broad Investor Interest in Revolut
Revolut continues to attract significant interest from institutional investors, reflecting its status as one of the most valuable fintech companies globally. The involvement of Mubadala and other major funds signals strong confidence in the company’s future growth prospects amid its continued expansion and solid financial performance.