Revolut is
enduring another blow to its valuation as tech-focused investment firm Molten
Venture has written down its stake in the London-headquartered challenger bank.
According to Molten’s financial result for the year ended March 2023 released
today (Thursday), the company’s stake in Revolut now stands at £54.5 million,
which is down by 40% from £91.3 million a year earlier.
Earlier in
April, global asset manager Schroeder made a
46% write down in its
stake in Revolut, slashing the fintech company’s valuation by approximately $15
billion as a result. The devaluation
follows a 15% reduction applied a month earlier by US-based TriplePoint Venture
Growth.
Both moves shot
down Revolut’s valuation to about $17.7 billion and $28 billion, respectively, representing a dramatic fall from a peak of $33 billion Revolut achieved in July 2021 after
raising $800 million from a funding round.
Molten’s
reduction of its stake in Revolut comes as the venture capital firm reported a
group loss of £243 million in its latest
financial report, as compared to
a profit of £301 million from the preceding fiscal year. Schroders’ investment
trust also recently reported a
41% decline in its holdings at the end of 2022.
“The past
year has delivered a significant shift in the investment environment,
particularly in the high-growth technology markets, as interest rates were
increased to combat global inflationary pressures,” Martin Davis, Molten’s CEO,
explained in the financial report. “This challenging market
backdrop has led to a reduction in the value of our portfolio, and our focus
for this year has been centered on the active management of our investments
while adapting our business to respond positively in the face of market
pressures.”
Revolut
Faces Difficulty as Global Fintech Funding Slumps
Meanwhile,
the reductions of stakes in
Revolut come at a difficult period for the fintech company. The firm, which
began as a cross-border money transfer platform and subsequently expanded into
consumer loans, crypto trading and pet insurance, is struggling to secure a
banking license in the UK.
In March,
Revolut reported its first full year of
profit from business activities in fiscal year 2021after
missing several timelines
to file the financial results for the period. However, external
auditor BDO said it could not independently verify about £477 million of the firm’s annual
revenues.
Across the
industry, other fintech companies are also experiencing devaluations. For
instance, Swedish ‘buy now, pay later’ credit provider, Klarna, saw its
valuation plummet from $45.6 billion to $6.7 billion within a year despite a
21% rise in its revenue.
Moreover, global fintech funding shrank significantly in 2022, according to data from Innovative Finance and CB Insights.
ASIC cancels license; BaFin probes illegal trading brands; read today’s news nuggets.
Revolut is
enduring another blow to its valuation as tech-focused investment firm Molten
Venture has written down its stake in the London-headquartered challenger bank.
According to Molten’s financial result for the year ended March 2023 released
today (Thursday), the company’s stake in Revolut now stands at £54.5 million,
which is down by 40% from £91.3 million a year earlier.
Earlier in
April, global asset manager Schroeder made a
46% write down in its
stake in Revolut, slashing the fintech company’s valuation by approximately $15
billion as a result. The devaluation
follows a 15% reduction applied a month earlier by US-based TriplePoint Venture
Growth.
Both moves shot
down Revolut’s valuation to about $17.7 billion and $28 billion, respectively, representing a dramatic fall from a peak of $33 billion Revolut achieved in July 2021 after
raising $800 million from a funding round.
Molten’s
reduction of its stake in Revolut comes as the venture capital firm reported a
group loss of £243 million in its latest
financial report, as compared to
a profit of £301 million from the preceding fiscal year. Schroders’ investment
trust also recently reported a
41% decline in its holdings at the end of 2022.
“The past
year has delivered a significant shift in the investment environment,
particularly in the high-growth technology markets, as interest rates were
increased to combat global inflationary pressures,” Martin Davis, Molten’s CEO,
explained in the financial report. “This challenging market
backdrop has led to a reduction in the value of our portfolio, and our focus
for this year has been centered on the active management of our investments
while adapting our business to respond positively in the face of market
pressures.”
Revolut
Faces Difficulty as Global Fintech Funding Slumps
Meanwhile,
the reductions of stakes in
Revolut come at a difficult period for the fintech company. The firm, which
began as a cross-border money transfer platform and subsequently expanded into
consumer loans, crypto trading and pet insurance, is struggling to secure a
banking license in the UK.
In March,
Revolut reported its first full year of
profit from business activities in fiscal year 2021after
missing several timelines
to file the financial results for the period. However, external
auditor BDO said it could not independently verify about £477 million of the firm’s annual
revenues.
Across the
industry, other fintech companies are also experiencing devaluations. For
instance, Swedish ‘buy now, pay later’ credit provider, Klarna, saw its
valuation plummet from $45.6 billion to $6.7 billion within a year despite a
21% rise in its revenue.
Moreover, global fintech funding shrank significantly in 2022, according to data from Innovative Finance and CB Insights.
ASIC cancels license; BaFin probes illegal trading brands; read today’s news nuggets.
- SEO Powered Content & PR Distribution. Get Amplified Today.
- EVM Finance. Unified Interface for Decentralized Finance. Access Here.
- Quantum Media Group. IR/PR Amplified. Access Here.
- PlatoAiStream. Web3 Data Intelligence. Knowledge Amplified. Access Here.
- Source: https://www.financemagnates.com//fintech/revolut-suffers-another-valuation-hit-as-molten-ventures-cuts-stake-by-40/
