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Revolut, the British-based banking and payments app, will on Thursday become the most valuable fintech company in British history when it unveils a fundraising that makes it worth $33bn.

Sky News has learnt that Revolut will announce that it has raised $800m (£577m) in a funding round led by SoftBank’s Vision Fund and Tiger Global Management, two of the world’s most prolific investors in fast-growing tech businesses.

The deal will transform Revolut into one of the most valuable fintech companies ever launched in Europe.

It will confirm a Sky News report earlier this month which a Revolut spokeswoman said was “not true” and “premature”.

SoftBank’s inaugural Vision Fund, which backed companies including Uber Technologies, owner of the ride-hailing platform, the buy-now-pay-later platform Klarna, had held discussions with Revolut in the past but failed to reach a deal.

Revolut’s potential valuation is staggering given that shareholders had been primed to expect its next capital-raising to value it at somewhere between $10bn and $15bn as recently as three months ago.

Sky News reported the $10bn-$15bn aspiration in mid-April, while Bloomberg News reported last month that a deal could see Revolut valued at more than $20bn.

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Only last year, Revolut raised money from the US-based investors TCV and TSG Consumer Partners at a valuation of $5.5bn (£3.98bn).

The new talks would mean the digital bank is now worth six times more than it was a year ago – after seeing its losses double.

Klarna’s recent fundraising, which saw it valued at $45.6bn, is said to have been a factor in Revolut’s ability to target a far higher valuation.

The latest developments will fuel questions about the ability of loss-making technology companies to attract price tags in excess of all but the largest publicly listed companies.

Even at the lower end of its mooted $30bn-$40bn range, Revolut would be worth more than almost three-quarters of the companies in London’s FTSE-100 index.

A global wave of investor interest in public and private tech companies has propelled valuations to record highs – fuelled in part by the recent deluge of US-listed special purpose acquisition companies (SPACs).

Nik Storonsky, the company’s founder and chief executive, said recently that the company was in the early stage of talks about raising further funds while pointing out that it was not in need of additional capital.

In May, Revolut disclosed losses in 2020 of just over £200m as its rapid growth saw staff costs increase substantially.

It said it was profitable in the final two months of the year.

Mr Storonsky would become a paper billionaire several times over if the latest fundraising talks are successful.

Revolut, which now has a presence in 35 countries and more than 15 million customers, is in the process of applying for a UK banking licence that will allow it to take deposits in its home market.

It is chaired by the City veteran Martin Gilbert, while the former Goldman Sachs International co-chief executive Michael Sherwood also sits on its board.

The company recently introduced an equity participation plan for its 2200 employees, which would see their stakes worth substantial sums at the latest valuation.

It has struggled with significant compliance issues and wave of executive departures but is said to be confident that it has largely addressed historic flaws in its systems.

Mr Storonsky recently said he was working on expansion plans that included India, Latin America and South Korea.

The current fundraising talks are likely to spur speculation about when – and where – Revolut might eventually choose to become a public company.

Rishi Sunak, the chancellor, has backed a series of proposals to improve the UK’s listings regime for fast-growing tech companies.

A review by Ron Kalifa, the former Worldpay chief, recently recommended changes to UK listing rules and a new growth fund to help ensure Britain’s leadership in the global fintech industry.

The UK’s other highly valued fintechs include Wise, the payments service, which is about to list in London with a valuation of well over £5bn.

FT Partners, the US-based fintech-focused investment bank which recently advised the French insurer Mollie on an $800m fundraising valuing it at $6.5bn, is overseeing Revolut’s latest capital-raising.

Revolut has been contacted for comment.

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Ryanair urges EU chief to ‘quit’ over air traffic strike disruption

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Ryanair urges EU chief to 'quit' over air traffic strike disruption

The boss of Ryanair has told Sky News the president of the European Commission should “quit” if she can’t stop disruption caused by repeated French air traffic control strikes.

Michael O’Leary, the group chief executive of Europe’s largest airline by passenger numbers, said in an interview with Business Live that Ursula von der Leyen had failed to get to grips, at an EU level, with interruption to overflights following several recent disputes in France.

The latest action began on Thursday and is due to conclude later today, forcing thousands of flights to be delayed and cancelled through French airspace closures.

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Mr O’Leary told presenter Darren McCaffrey that French domestic flights were given priority during ATC strikes and other nations, including Italy and Greece, had solved the problem through minimum service legislation.

He claimed that the vast majority of flights, cancelled over two days of action that began on Thursday, would have been able to operate under similar rules.

Mr O’Leary said of the EU’s role: “We continue to call on Ursula von der Leyen – why are you not protecting these overflights, why is the single market for air travel being disrupted by a tiny number of French air traffic controllers?

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File photo dated 02/09/22 of a Ryanair Boeing 737-8AS passenger airliner comes in to land at Stansted Airport in Essex. Ryanair has revealed around 63,000 of its passengers saw their flights cancelled during last week's air traffic control failure which caused widespread disruption across the industry and left thousands of passengers stranded overseas. In its August traffic update, the Irish carrier said more than 350 of its flights were cancelled on August 28 and 29 due to the air traffic contr
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Ryanair has cancelled more than 400 flights over two days due to the action in France. File pic: PA

“All we get is a shrug of their shoulders and ‘there’s nothing we can do’. We point out, there is.”

He added: “We are calling on Ursula von der Leyen, who preaches about competitiveness and reforming Europe, if you’re not willing to protect or fix overflights then quit and let somebody more effective do the job.”

The strike is estimated, by the Airlines for Europe lobby group to have led to at least 1,500 cancelled flights, leaving 300,000 travellers unable to make their journeys.

Ryanair chief executive Michael O'Leary speaks to journalists during a press conference at The Alex Hotel in Dublin. Picture date: Thursday October 3, 2024.
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Michael O’Leary believes the EU can take action on competition grounds. Pic: PA

Ryanair itself had axed more than 400 flights so far, Mr O’Leary said. Rival easyJet said on Thursday that it had cancelled 274 services over the two days.

The beginning of July marks the start of the European summer holiday season.

The French civil aviation agency DGAC had already told airlines to cancel 40% of flights covering the three main Paris airports on Friday ahead of the walkout – a dispute over staffing levels and equipment quality.

Mr O’Leary described those safety issues as “nonsense” and said twhile the controllers had a right to strike, they did not have the right to close the sky.

DGAC has warned of delays and further severe disruption heading into the weekend.

Many planes and crews will be out of position.

Mr O’Leary is not alone in expressing his frustration.

The French transport minister Philippe Tabarot has denounced the action and the reasons for it.

“The idea is to disturb as many people as possible,” he said in an interview with CNews.

Passengers are being advised that if your flight is cancelled, the airline must either give you a refund or book you on an alternative flight.

If you have booked a return flight and the outbound leg is cancelled, you can claim the full cost of the return ticket back from your airline.

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CBI kicks off search for successor to ‘saviour’ Soames

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CBI kicks off search for successor to 'saviour' Soames

The CBI has begun a search for a successor to Rupert Soames, its chairman, as it continues its recovery from the crisis which brought it to the brink of collapse in 2023.

Sky News has learnt that the business lobbying group’s nominations committee has engaged headhunters to assist with a hunt for its next corporate figurehead.

Mr Soames, the grandson of Sir Winston Churchill, was recruited by the CBI in late 2023 with the organisation lurching towards insolvency after an exodus of members.

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The group’s handling of a sexual misconduct scandal saw it forced to secure emergency funding from a group of banks, even as it was frozen out of meetings with government ministers.

One prominent CBI member described Mr Soames on Thursday as the group’s “saviour”.

“Without his ability to bring members back, the organisation wouldn’t exist today,” they claimed.

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Rupert Soames
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Rupert Soames. Pic: Reuters

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Mr Soames and Rain Newton-Smith, the CBI chief executive, have partly restored its influence in Whitehall, although many doubt that it will ever be able to credibly reclaim its former status as ‘the voice of British business’.

Its next chair, who is also likely to be drawn from a leading listed company boardroom, will take over from Mr Soames early next year.

Egon Zehnder International is handling the search for the CBI.

“The CBI chair’s term typically runs for two years and Rupert Soames will end his term in early 2026,” a CBI spokesperson said.

“In line with good governance, we have begun the search for a successor to ensure continuity and a smooth transition.”

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Ryanair and easyJet cancel hundreds of flights over air traffic control strike

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Ryanair and easyJet cancel hundreds of flights over air traffic control strike

Ryanair and easyJet have cancelled hundreds of flights as a French air traffic controllers strike looms.

Ryanair, Europe’s largest airline by passenger numbers, said it had axed 170 services amid a plea by French authorities for airlines to reduce flights at Paris airports by 40% on Friday.

EasyJet said it was cancelling 274 flights during the action, which is due to begin later as part of a row over staffing numbers and ageing equipment.

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The owner of British Airways, IAG, said it was planning to use larger aircraft to minimise disruption for its own passengers.

The industrial action is set to affect all flights using French airspace, leading to wider cancellations and delays across Europe and the wider world.

Ryanair said its cancellations, covering both days, would hit services to and from France, and also flights over the country to destinations such as the UK, Greece, Spain and Ireland.

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Group chief executive Michael O’Leary has campaigned for a European Union-led shake-up of air traffic control services in a bid to prevent such disruptive strikes, which have proved common in recent years.

He described the latest action as “recreational”.

Michael O'Leary. Pic: Reuters
Image:
Michael O’Leary. Pic: Reuters

“Once again, European families are held to ransom by French air traffic controllers going on strike,” he said.

“It is not acceptable that overflights over French airspace en route to their destination are being cancelled/delayed as a result of yet another French ATC strike.

“It makes no sense and is abundantly unfair on EU passengers and families going on holidays.”

Ryanair is demanding the EU ensure that air traffic services are fully staffed for the first wave of daily departures, as well as to protect overflights during national strikes.

“These two splendid reforms would eliminate 90% of all ATC delays and cancellations, and protect EU passengers from these repeated and avoidable ATC disruptions due to yet another French ATC strike,” Mr O’Leary added.

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