Revolut has overtaken Nubank as the world’s most valuable neobank, reaching a valuation of US$75 billion after an employee secondary share sale, according to a staff memo seen by Bloomberg.

The London-based fintech startup was valued at US$45 billion last year following a share sale by new and existing investors. The new transaction priced its shares at US$1,381.06, increasing Revolut’s valuation by two-thirds.

The surge comes after Revolut boosted its annual profits by 149% to US$1.4 billion in 2024, driven by growth in wealth management, foreign exchange (FX), and interest income. The company is now accelerating its global expansion plans. In Latin America (LatAm), Revolut expects to launch as a bank in Mexico early next year, and is planing entries into Colombia and Argentina. In Asia-Pacific, Revolut is preparing to launch in India after securing a payment license in April, and is pursuing further licenses in Australia and New Zealand. In Europe, it intends to submit a French banking license application, and open branches in Portugal and Belgium. Finally, in Africa and the Middle East, the company was recently awarded an in-principle payment license in the United Arab Emirates (UAE).

Founded in 2015, Revolut offers banking services for individuals and businesses, including crypto, stock trading, loans, and FX. The company claims more than 65 million customers worldwide, and over a billion transactions a month. Its enterprise arm, Revolut Business, has surpassed US$1 billion in annualized revenue and is now processing over 4 million monthly payments for merchants.

Revolut aims to reach 100 million customers by mid-2027, and enter more than 30 new markets by 2030. This growth will be powered by US$13 billion in planned investments over the next five years comprising a US$4 billion commitment to the UK, US$1.2 billion to its Western Europe hub in France, and US$500 million to accelerate its operations in the US.

A valuation exceeding industry benchmarks

Though Revolut continues to show strong growth, the company’s valuation significantly exceeds industry norms. New data from Multiples, a UK-based valuation data platform, reveal that Revolut is trading at an enterprise value-to-revenue multiple (EV/R) of 18.3, compared to an industry median of 5.8.

The EV/R ratio compares a company’s enterprise value with its revenue. It’s one of the main indicators used by investors to gauge whether a stock is priced fairly.

This disparity means that investors are willing to pay nearly four times more per dollar of revenue for Revolut than for the average industry peer. This may suggest that investors are viewing Revolut as having stronger growth prospects, a more favorable strategic position, or greater expansion opportunities. However, it may also imply that the market is overvaluing Revolut relative to its actual earnings power.

In comparison, Brazil’s Nubank, which has a market capitalization of about US$72 billion and ranks as the world’s second most valuable neobank, trades at an EV/R close to the industry media while delivering stronger financial performance.

In fiscal year (FY) 2024, Nubank generated US$11.5 billion in revenue, nearly double Revolut’s US$4 billion, and US$1.97 billion in net income, 41% higher than Revolut’s. It also boasts a much larger customer base of 123 million customers across Brazil, Mexico, and Colombia.

Founded in 2013 and headquartered in Sao Paulo, Nubank is the largest digital bank in LatAm and one of the most influential ones globally. The company provides a comprehensive suite of digital financial products and services designed to simplify banking and improve financial inclusion, including a no-fee digital payment account, international credit cards, personal loans, insurance products, investment services, and business banking solutions.

Having established a strong foothold in LatAm, Nubank is now setting its sights beyond the region. This week, the company announced that it has applied for a national bank charter in the US, with plans to offer deposit accounts, credit card, lending and digital asset custody. The move marks its first major step into a new market outside LatAm.

Profitability still elusive

After Revolut, Nubank, and WeBank, which lead the global neobanking market in valuation, customer base, and revenue scale, other major players include:

• Wise, a UK player initially focused on cross-border transactions. Wise is valued at US$15.3 billion and generated US$1.9 billion in revenue in 2024;
• Klarna, which specializes in buy now, pay later (BNPL) arrangements (US$14 billion valuation and US$2.8 billion in revenue in 2024);
• Chime, a neobank from the US (valued at US$9 billion with US$1.7 billion in revenue in 2024);
• Kakao Bank, a digital bank from South Korea (valued at US$8.2 billion with US$2.1 billion in revenue in 2024); and
• Monzo, an app-based challenger bank in the UK (valued at US$5.9 billion with US$1.6 billion in revenue in 2024).

Together, these eight companies are among the world’s top 15 most valuable neobanks. Though these neobanks have valuations ranging from US$1.8 billion to US$75 billion, only 11 of them are turning a profit, with major names like Chime, Klarna, Germany’s N26, and Argentina’s Uala still yet to achieve profitability.

Featured image: Edited by Fintech News Switzerland, based on image by rawpixel.com via Freepik