Revolut reportedly strikes deal with SoftBank in hopes of gaining banking licence

Revolut has reportedly reached an agreement with its largest investor SoftBank to simplify its ownership structure, as it hopes to ease its path to securing a banking licence in the UK.

According to people familiar with the matter, the fintech has been in negotiations with the Japanese investor for months, as reported by the Financial Times.

Revolut has held a full EU banking licence in Lithuania since 2021, but has yet to receive one in its home country of the UK despite submitting its application two years ago.

It will only be able to secure its licence if it gets rid of preference shares held by investors including SoftBank.

The Bank of England made collapsing its six classes of shares a condition for granting the licence.

People familiar with the matter told the FT that the agreement in principle struck last week does not include any new issuance of “top-up” shares for the investor and will not have a financial impact on the company.

According to the report, other investors including Tiger Global Management, Balderton Capital, Ribbit Capital and venture capital firm TCV have all either agreed to, or are in final talks to, transfer their shares into a single class.

Revolut declined to comment.