FinTech giants Revolut and Stripe make strategic moves as private markets heat up 🤑🔥; Klarna's return to profitability sets stage for landmark US IPO 💸🇺🇸; Charles Schwab's Crypto Pivot 👀📈
FinTech is Eating the World, 26 November
Hey Everyone,
Good morning & happy Wednesday! Today’s issue is super packed 😤 We’re 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 & what’s next + bonus dive into Klarna’s biggest public competitor & why we should start thinking more about M&As), and Charles Schwab that’s about to enter the crypto space (why it makes sense & what it tells us + bonus dive into Schwab’s latest financials & whether it’s worth your time and money in 2024 and beyond). So let’s just jump straight into the interesting stuff 🌶️
FinTech giants Revolut and Stripe make strategic moves as private markets heat up 🤑🔥
The news 🗞️ 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.
Let’s take a quick look at this and see why it matters.
More on this 👉 Revolut's transaction, which includes approximately $100 million in shares sold to Goldman Sachs' GS 0.00%↑ 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 🚀🏦 [what it’s all about, why it matters & what’s 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 💳🤖 [what the USP here & what’s next + a bonus dive into Stripe et al.]
✈️ THE TAKEAWAY
What’s next? 🤔 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 😎
ICYMI:
