Revolut shareholder writes down value of its stake amid fintech squeeze      

The writedown comes after a report last month that investor TriplePoint Venture Growth BDC had lowered the value of its stake in Revolut by 15%

A shareholder in Revolut has cut the value of its stake in the financial payments firm by 46% — the latest indicator of how investor caution is impacting fintech companies. 

An investment trust managed by Schroders disclosed a £4.7m (€5.3m) writedown in its 2022 results. That brought the valuation of the stake held by Schroders Capital Global Innovation Trust to £5.4m from around £10m a year earlier.

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

While Revolut’s delayed accounts showed the fintech firm made its first annual profit in 2021, its auditor said it was unable to satisfy itself on the “completeness and occurrence” of almost three-quarters of its revenue in 2021.

“We do not engage in speculation on our valuation,” Revolut said in a statement to Bloomberg. 

Since our last funding round, in which we were valued at $33bn (€30bn), Revolut has continued to perform strongly in all its markets, has continued to hire and expand, and reported its first full year of profitability.” 

But a broader gloom has enveloped the startup world since Revolut raised $800m at the $33bn valuation in 2021.

Revolut chief executive Nikolay Storonsky said in July 2022, that Revolut was profitable and had enough funding for two years, allowing it to sidestep a gruelling period for fintech fundraising that has seen rivals such as Klarna cut billions of dollars from their market value.

Revolut applied for a UK banking license in 2021 and is still waiting for a decision from the Prudential Regulation Authority. The company is “nearly there” with gaining the license, chief financial officer Mikko Salovaara said last month.

A spokesperson for Schroders — which invested $13.7m in Revolut in 2021 along with investors including SoftBank Vision Fund 2, according to earlier filings — declined to comment.

Bloomberg