Revolut valuation almost halved 😳; VC downturn in 6 charts 📉; Klarna doubles down on AI 🤖
FinTech is Eating the World, 25 April
Hey Everyone,
Good morning! The latest newsletter comes with a slight delay but it’s absolutely worth the wait 😎 Today we’re going to look at Revolut whose valuation almost halved (why it makes sense + a deep dive into Revolut & one more bonus read), VC downturn in 6 charts (latest data + 2 more bonus reads), and Klarna that doubles down on AI (why it’s a big move making me even more bullish on them + a deep dive into Klarna). Let’s jump straight into the spicy stuff 🌶
Revolut valuation almost halved 😳
The (expected) news 🗞 Investment bank Schroders has slashed the valuation of its shareholding in Revolut by almost half after the firm was criticized for downplaying red flags from auditors BDO over its revenue statement, Finextra reported.
Founded in 1804 and based in London, Schroders manages nearly $1 trillion of wealth and investments across public and private markets.
More on this 👉 In a regulatory filing, the Schroders Capital Global Innovation Trust devalued its investment in the (neo)bank by around 46%. Schroders invested at the market peak in Revolut’s $800M Series E round in 2021.
The Trust said the value of its stake on 31 December 2022 was £5.4M, compared with £10.1M on 31 December 2021. This implies a similar reduction in the bank's valuation from $33 billion to $17.7 billion. Ouch 😳
✈️ THE TAKEAWAY
What does this mean? 🤔 Schroders’ actions come just 6 weeks after Revolut filed its much-delayed financial accounts and just 4 weeks after I argued that there’s no way Revolut is worth $33 billion right now. Here’s what I said back then:
I’m pretty confident we should see a solid correlation (30-50%) if Revolut raises anytime soon.
Well, Revolut didn’t raise any external capital but devaluation happened regardless. On top of that, we must remember that earlier one of the world’s leading secondary brokers, Setter Capital, also has Revolut holdings listed at a discount of more than 50%. Looks like nature is healing.