Revolut’s struggle to land a U.K. banking license continues to cost the London-based FinTech.
Molten Ventures, a venture capital firm that has invested in Revolut, has marked down the value of its stake by 40%, according to its annual report, released Thursday (June 15).
Molten valued its stake at $116 million in March 2022, while Thursday’s report put it at just shy of $70 million.
“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,” Molten CEO Martin Davis said in the 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.”
In an interview with CityA.M. Thursday, Davis indicated that Revolut’s as-yet-unsuccessful campaign to attain a U.K. banking license was behind the markdown, insisting that his firm was still confident in the FinTech.
“But the reality is, we all know that there are some proof points the market wants to see around increased revenues for 2022, to get a clean set of accounts 2022,” Davis added. “They want to see visibility around profitability, they want to see visibility around the banking license in the U.K.”
Revolut has been trying to get a banking license since 2021. Last month, CEO Nik Storonsky blamed recent upheaval in the banking sector for its ongoing delay.
“Ultimately, it is not really us, it is generally the banking crisis we see at the moment that makes regulators extra cautious,” Storonsky said at the time.
Earlier this month, Revolut reported it had more than 30 million retail customers, adding more than 5 million users worldwide since November.
Eight years after its launch, the company said it now has more than 6.8 million British customers. Revolut’s home country accounted for the largest portion of its 5 million user growth, with 1.2 million Britons joining the platform since November.