Revolut chief says going public 'two years away'

Revolut chief executive Nik Storonsky said he wants to take the London-based digital bank public, but not until at least 2028. Revolut has more than 3m customers in Ireland.

Revolut chief executive Nik Storonsky said he wants to take the London-based digital bank public, but not until at least 2028, extending the timeline on one of Europe’s most anticipated offerings.

“Two years away,” Mr Storonsky said regarding a potential initial public offering in an interview with David Rubenstein for an upcoming episode of The David Rubenstein Show: Peer to Peer Conversations. 

“We’re a bank, and for a bank, it’s super important to have trust. Public companies are trusted more compared to private companies.”

Mr Storonsky’s comments end any speculation that the Nvidia and Coatue Management-backed financial technology firm could list as soon as this year or that it may remain private indefinitely.

Revolut has more than 3m customers in Ireland.

The company will weigh launching more secondary share sales before any initial public offering, as it generally does such transaction every one to two years, according to Mr Storonsky. 

Secondary deals generate liquidity for early investors and employees, allow Revolut to stay private for longer and have generally raised its valuation. Bloomberg reported in February that the firm was considering a fresh sale of shares this year.

The most recent secondary transaction, completed in November, valued the fintech at $75bn (€63bn), up from $45bn (€38bn) a year earlier.

As Revolut’s valuation has soared, the company has accelerated its international expansion plans. Revolut recently applied for a US bank licence and and appointed former Visa executive Cetin Duransoy to oversee the region. Revolut has had a nascent US operation since 2020, working with partner banks to serve customers. The company first discussed applying for a US bank licence in 2021 but paused those efforts to focus on UK regulatory approval, which it secured in March.

Mr Storonsky said authorisation for a US bank licence, which will allow Revolut to directly access Federal Reserve payment systems and offer personal loans and credit cards, could take as long as a year. However, the firm’s “official target” for the US bank charter is four months, according to Mr Storonsky.

“It’s obviously much easier for us given the new administration, plus that we have so many other banking licences, plus we have a banking licence in the UK now,” he said when asked about whether he was confident about getting a US green light. “So for us it became much easier, compared to two years ago.” The CEO spoke to Rubenstein in Washington, during the International Monetary Fund’s Spring Meetings, where he was meeting with regulators and business leaders.

Bloomberg