FinTech giants Revolut and Stripe make strategic moves as private markets heat up ๐ค๐ฅ; Klarna's return to profitability sets stage for landmark US IPO ๐ธ๐บ๐ธ; Charles Schwab's Crypto Pivot ๐๐
FinTech is Eating the World, 26 November
Hey Everyone,
Good morning & happy Wednesday! Todayโs issue is super packed ๐ค Weโre looking at FinTech heavyweights Revolut and Stripe which just made some strategic moves as private markets are heating up (why it matters & what it tells us about FinTech in general + bonus reads on both Revolut and Stripe & some priceless startup resources inside), Klarna whose return to profitability is setting stage for landmark US IPO (quick look at their latest numbers, what they mean & whatโs next + bonus dive into Klarnaโs biggest public competitor & why we should start thinking more about M&As), and Charles Schwab thatโs about to enter the crypto space (why it makes sense & what it tells us + bonus dive into Schwabโs latest financials & whether itโs worth your time and money in 2024 and beyond). So letโs just jump straight into the interesting stuff ๐ถ๏ธ
FinTech giants Revolut and Stripe make strategic moves as private markets heat up ๐ค๐ฅ
The news ๐๏ธ FinTech giants Revolut and Stripe are executing major share transactions that signal evolving strategies in the private markets.
Revolut has facilitated a share sale worth between $300-500 million for early investors, while Stripe is conducting a tender offer at a $70 billion valuation.
Letโs take a quick look at this and see why it matters.
More on this ๐ Revolut's transaction, which includes approximately $100 million in shares sold to Goldman Sachs' GS 0.00%โ growth equity unit, maintains the company's $45 billion valuation. This follows an August sale where employees sold $500 million worth of shares to investors including Coatue, D1 Capital Partners, and Tiger Global.
The UK-based FinTech recently celebrated reaching 50 million global customers and secured its long-awaited UK banking license in July, albeit with certain restrictions.
ICYMI: Revolut hits 50M users milestone, secures UK trading license in major growth push ๐๐ฆ [what itโs all about, why it matters & whatโs next for Revolut + a deep dive into its biggest global competitor]
Meanwhile, Stripe is offering shares at $27.51 each, maintaining its previous $70 billion valuation from earlier this year. The tender offer, expected to involve hundreds of millions of dollars in transactions, allows former employees and some current investors to sell their shares by mid-December.
ICYMI: Stripe aims to revolutionize cross-border commerce in Asia with AI ๐ณ๐ค [what the USP here & whatโs next + a bonus dive into Stripe et al.]
โ๏ธ THE TAKEAWAY
Whatโs next? ๐ค At the core, these developments suggest a maturing FinTech sector where private companies provide liquidity to their employees and early backers while maintaining strategic control over their public listing timelines. More importantly, these transactions demonstrate that major private investors remain confident in leading FinTech companies despite market uncertainties. And this is especially important for Revolut, whose successful share sales and banking license acquisition position it for aggressive global expansion, including planned mortgage offerings in European markets and potential US banking operations. Looking ahead, we can expect more private market liquidity events as other FinTech unicorns seek to provide investor and employee exit opportunities without rushing to IPO. FinTech is so back ๐
ICYMI:
