Abu Dhabi’s sovereign wealth fund, Mubadala, has taken its first stake in London-based Fintech company Revolut, participating in a share sale that valued the firm at $45 billion.
Revolut is one of the largest crowdfunding success stories. During its early days, the company raised money online from smaller investors. Almost 3,500 investors purchased securities in the digital bank with the value increasing dramatically since its first funding round.
The transaction, which occurred in August, involved the sale of $500 million worth of shares by Revolut employees, the Financial Times reported, citing sources familiar with the deal.
Mubadala joined other prominent investors such as Coatue, D1 Capital Partners, and Tiger Global in the purchase, though the exact size of Mubadala’s investment remains undisclosed.
Revolut’s founder and CEO, Nik Storonsky, sold between $200 million and $300 million worth of his shares during the sale, accounting for about half of the total $500 million in shares sold by employees.
The proceeds from Storonsky’s share sale are expected to support his venture capital fund, QuantumLight, which focuses on AI-driven investing and aims to identify emerging tech companies using proprietary data.
Before the sale, Storonsky’s stake in Revolut was valued at nearly $8 billion, based on the company’s $45 billion valuation.
The sale marked a significant move for Storonsky, who co-founded Revolut in 2015, as the company continues its rapid global expansion.
Revolut, which serves more than 45 million customers globally, recently secured a long-awaited UK banking license in July. This approval is expected to help the fintech gain further regulatory clearances in critical markets such as the United States.
Mubadala’s investment in Revolut aligns with its growing focus on venture capital in Europe, where the sovereign fund has been increasingly active.
Data from PitchBook indicates that Mubadala has participated in at least 28 European deals over the past five years, making Europe its second most active region for venture deals after North America.
The fund has previously invested in another fintech giant, Klarna, but this marks its first backing of Revolut.
Revolut’s recent achievements include securing an EU banking license from Lithuania and one in Mexico earlier this year.
The fintech also reported a substantial financial turnaround, swinging to a pre-tax profit of £438 million in 2023, compared to a £25 million loss in 2022.
Despite the growth, the company faced regulatory delays, including a warning from its auditor regarding potential misstatements in its 2021 revenues, which has since been resolved.
