News knocks down internal valuation to $11bn

Revolut is now the highest-value startup in Europe.

a man smiling for the camera

Guillaume Pousaz/

Following five months on top, has been knocked off its spot as Europe’s highest value startup after slashing its internal valuation to around $11bn.

Back in January, raised $1bn at a valuation of $40m from investors including US investment group Tiger Global, and at the time was set to use the funds as part of a web3 strategy.

According to people familiar with the situation, the startup told employees about the valuation drop last month, at the same time lowering the price of stock options from around $252 to $65 per share, as first reported by the Financial Times.

Reducing the internal valuation will help staff by reducing the cost of company equity, putting them in a better position if the company ever goes to an initial public offering. recently announced to our employees that we will align equity awards to an updated tax valuation that reflects the current macroeconomic conditions,” a spokesperson said.

“This gives our employees the opportunity to share more meaningfully in the potential economic upside as we continue to grow our business.”

Stripe made a similar move back in July, cutting its valuation by 28 per cent.

Following Klarna’s infamous valuation drop around the same time, became Europe’s most valuable startup.

The valuation cut for the company knocks it off the top spot, leaving Revolut, valued at $33bn and still on the path to superapp status, in its place.

Speaking at Web Summit last month – likely around the time of the valuation cut – founder and CEO Guillaume Pousaz said quite plainly that valuation is actually not that important to him.

“Valuation is an investor component. I’m a founder, so I just care about building, about net revenue growth and margin,” Pousaz said.

“I would almost tell you that I don’t care at all because I care about where my revenue is going and that’s it,” he added. 

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