- Revolut is hiring an investor-relations team, a step normally taken by firms wanting to go public.
- Insiders said the hires were, for now, about managing Revolut’s growing list of private investors.
- The $5.5 billion fintech is reportedly seeking more capital at a valuation up to $15 billion.
- See more stories on Insider’s business page.
Revolut, a $5.5 billion fintech startup, is hiring a head of investor relations, a step usually taken by companies soon to go public and increasingly by startups that have raised considerable private capital.
The British challenger bank, which expanded into the US last year, is seeking a candidate to organize investor and analyst meetings as well as conference presentations and roadshows, according to an ad listed on LinkedIn.
In addition to a head of investor relations, the fintech is looking to hire two investor-relations analysts. The new investment czar will act as a “key point of contact” for the investment community while also creating “key public materials including presentations.”
Revolut will task the new hire with both developing a capital-raising strategy and participating in “capital-raising activities.” The unicorn fintech wants the new head to have extensive experience in investor relations “at a large public company in technology or financial services.” Revolut also said it was open to someone with experiences as a sell-side analyst at a leading investment bank or research firm.
Revolut, which was founded in 2015 by Nik Storonsky and Vlad Yatsenko, says it has around 15 million personal customers as well as 500,000 business customers. The app offers digital-banking services, including current accounts, fee-free trading, and instant currency exchanges.
Investors say Revolut needs IR to manage its growing cap table
Investors in Revolut who spoke to Insider on condition of anonymity indicated that a head of investor relations was a common role in late-stage private companies with plenty of shareholders. Revolut has about 40 private investors, and one person with knowledge of the matter said that hiring a team for investor relations had been a condition of the startup’s previous funding round.
An existing investor-relations structure will be useful if Revolut does decide to list. Insider has learned that Revolut has been lobbying lawmakers in the UK to change some of the rules that govern listings in the country. The UK government was recently advised in Lord Hill’s review on listings that it should alter free-float requirements and enable dual-class share structures, something that might make London more attractive to high-growth companies.
The city has already played host to three sizeable listings this year in the review site Trustpilot, the food-delivery business Deliveroo, and the cybersecurity firm Darktrace. But Deliveroo’s disastrous first day of trading is thought to have dented these efforts, with high-growth European startups still indicating a preference for a US listing.
Storonsky has previously said the business would need to have a valuation of at least $20 billion for him to even consider taking the business public. In an interview with Financial News in 2019, Storonsky said that the business was still “very tiny” to do an IPO.
In February 2020, Revolut raised $500 million at a $5.5 billion valuation in Series D round, led by the US investor TCV. Fellow US fund TSG Consumer Partners poured an additional $80 million into the company in an extension to the round in June.
In April, Sky News reported that Storonsky was looking to raise again in a new round that would value the business at more than $10 billion. FT Partners, a US fintech investment bank, is said to be advising on the round. One person familiar with the funding indicated that the firm could look to push its valuation to around $15 billion to $20 billion, in line with a wider surge in fintech valuations.
Revolut declined to comment on funding speculation.
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