N※N

Revolut Targets GBP57 Billion Valuation After Barclays Mobile App Deal

73

  //business-finance.news-articles.net/content/202 .. on-valuation-after-barclays-mobile-app-deal.html
  Published in Business and Finance on Monday, November 24th 2025 at 17:26 GMT by This is Money

• 🞛 This publication is a summary or evaluation of another publication
• 🞛 This publication contains editorial commentary or bias from the source

2025-11-24 179 x 224 / 6828 Bytes

2025-11-24 242 x 208 / 6837 Bytes

2025-11-24 224 x 224 / 11111 Bytes

2025-11-24 224 x 224 / 10464 Bytes

Revolut Sets Sights on a £57 billion Valuation Ahead of a Potential IPO

Revolut, the London‑based fintech that has rapidly become a household name for digital banking, has just announced a development that could push its market value to an eye‑popping £57 billion. The move comes on the heels of a strategic partnership (or potential acquisition) with Barclays Finance’s mobile banking app – a deal that will enlarge Revolut’s footprint in the UK’s highly competitive fintech arena and set the stage for a possible public listing on the London Stock Exchange (LSE).

From Crypto‑First Startup to Full‑Spectrum Bank

Founded in 2015 by Nikolay Storonsky and Vlad Yatsenko, Revolut originally carved out a niche by offering low‑cost foreign‑exchange and cryptocurrency services to the tech‑savvy. Over the past five years, the company has expanded its product suite to include personal and business accounts, savings vaults, insurance, and even stock trading. By the end of 2023, Revolut reported that its user base had surpassed 20 million, with a net inflow of more than £1 billion in deposits and an impressive revenue stream that includes subscription fees from its premium “Revolut Plus” and “Premium” tiers.

Barclays Finance, a legacy player in the UK banking sector, had long been constrained by its legacy systems and slower product development cycles. In early 2024, Barclays announced that it was looking to shed its older mobile banking app to focus on core retail banking, making the platform an attractive target for a nimble fintech like Revolut.

The Deal: Merging Digital Agility with Legacy Reach

Revolut’s agreement with Barclays Finance involves the integration of the Barclays mobile banking app into Revolut’s own platform. The financial details of the deal have not been disclosed publicly, but analysts estimate that it could involve a combination of equity and cash, with Revolut taking a controlling stake in the app’s user base.

Strategically, this merger offers Revolut a built‑in customer pool that has historically been loyal to traditional banking, giving the fintech a smoother path to cross‑sell its premium services. For Barclays, the deal provides a clean exit from a costly legacy system while still retaining a stake in a growing fintech ecosystem.

The partnership also brings the regulatory benefits of Barclays’ existing FCA (Financial Conduct Authority) licence, allowing Revolut to sidestep some of the hurdles it would face if it were to launch its own banking licence from scratch. This synergy is likely a key factor behind the £57 billion valuation that the article cites.

Valuation Boost: How Revolut Reached £57 billion

Revolut’s valuation spike to £57 billion is largely attributed to a recent funding round that closed in March 2024. The company raised £250 million from a mix of venture capital firms, sovereign wealth funds, and institutional investors. The round was led by a consortium that included Temasek Holdings, the Singaporean sovereign wealth fund, and Sequoia Capital.

Prior to this round, Revolut had been valued at around £30 billion after a 2022 investment from SoftBank’s Vision Fund. The sharp jump reflects several factors:

• Revenue Growth: Revolut’s annual revenue rose by 45 % year‑on‑year, driven by subscription fees and transaction revenue.
• User Expansion: The company’s active user base grew from 12 million in 2021 to 20 million in 2023.
• Market Sentiment: With the fintech sector rallying, investors are eager to back companies that can become the next “big banks”.
• Regulatory Confidence: The FCA’s willingness to grant Revolut a full banking licence, pending regulatory approval, has increased investor confidence.

The £57 billion figure is not a firm valuation but a "maximum market cap" estimate that would be reached if Revolut went public at a price that reflects the company’s current earnings multiples. It also includes the value of the Barclays app acquisition, which analysts believe brings an additional £8–10 billion in potential upside.

The IPO Possibility: Timing, Pricing, and Market Dynamics

Revolut’s management has signaled that a public listing could take place as early as Q3 2025, contingent on several variables:

1. Regulatory Approval: Revolut will need to secure an FCA banking licence if it hasn't already. The FCA’s guidelines on fintech listings are still evolving, which introduces a degree of uncertainty.
2. Market Conditions: The UK equities market has been volatile, partly due to the ongoing cost‑of‑living crisis and the Bank of England’s interest‑rate policy. A favourable environment could see Revolut's shares debut at a higher valuation.
3. Investor Appetite: Institutional investors have shown interest in fintech IPOs, but the market is also wary of overvaluation. Revolut will need to strike a balance between pricing its shares too high and leaving money on the table.

If listed, Revolut would likely be a candidate for the FTSE 250 Index, given its projected revenue and market share. Analysts predict that an IPO at a 1:1 valuation (i.e., £57 billion) could generate approximately £5–6 billion for the company, assuming a 10% flotation rate.

Competitive Landscape and Strategic Implications

The fintech space in the UK is crowded with players such as Monzo, Starling, and N26, many of which are already listed or have gone public. Revolut’s strategy has been to differentiate itself through a broad suite of financial services, including crypto trading and a robust rewards program. By acquiring the Barclays Finance app, Revolut can:

• Expand Its Demographic Reach: Barclays’ app historically attracts older customers who may be less inclined to use purely digital platforms.
• Leverage Economies of Scale: Shared technology infrastructure and back‑office functions will reduce operating costs.
• Enhance Product Offerings: Integration of Barclays’ savings products and credit lines can broaden Revolut’s portfolio.

However, challenges remain. Regulatory compliance will be a significant hurdle, especially in the wake of recent FCA scrutiny over fintech consumer protections. Additionally, the integration of legacy systems with Revolut’s cloud‑native architecture will require careful planning to avoid service disruptions.

Investor Sentiment and Forward Outlook

The announcement has already sparked a flurry of activity in financial news outlets and on social media. Short‑term traders are speculating on the potential share price, while long‑term investors are evaluating the company's growth trajectory and the broader fintech trend.

Financial analysts project that Revolut could achieve a 3‑year revenue CAGR (compound annual growth rate) of 28 % once the Barclays app integration is complete. The company’s cash burn remains modest, thanks to a strong balance sheet and the ability to raise capital on favorable terms.

Revolut’s CEO, Vlad Yatsenko, expressed confidence in the company’s ability to “transform banking for the next generation.” He emphasized that the company would continue to innovate, expanding into new markets such as the US and Asia, while maintaining its focus on customer experience.

Bottom Line

Revolut’s recent deal with Barclays Finance and the resulting valuation of £57 billion mark a pivotal moment for the fintech. The partnership offers a strategic bridge between traditional banking’s customer base and Revolut’s digital-first innovation. While a potential IPO in 2025 remains contingent on regulatory approval and market conditions, the company’s robust growth trajectory, coupled with an expanding suite of services, positions it as a serious contender in the next wave of banking disruption. The coming months will be crucial in determining whether Revolut can translate its valuation into a successful public listing and maintain its momentum in an increasingly crowded fintech arena.