How can this six-year-old fintech firm be worth £24bn, supposedly 70% of Lloyds’ stock market value? It is “great news”, said Rishi Sunak, performing his ra-ra routine for the UK’s fintech sector, that Revolut has raised another $800m (£566m) to fund expansion. And it is: more capital and bold investors is what the UK scene needs. If the new cash helps Revolut take its “financial superapp” to the world, good luck to it. But how can this six-year-old company be worth $33bn, or £24bn, as implied by the terms of the investment from SoftBank and Tiger Global Management? The valuation is a whisker above that of NatWest, and the more remarkable comparison is perhaps with Lloyds Banking Group, the biggest beast in UK banking. Revolut is supposedly worth 70% of Lloyds’ stock market value. What?
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