Revolut's Valuation Drops by $15B; Schroders Cuts Stake Value by 46

Revolut's status as the United Kingdom's leading fintech company faces challenges following a valuation adjustment by asset manager Schroders, which suggests that nearly $15 billion could be erased from its worth over just 18 months since investing almost ￡10 million.

In its annual report, Schroders' Capital Global Innovation Trust revealed that the valuation of its stake in Revolut had dropped by 46, valuing it at ￡5.4 million as of December compared to ￡10.1 million a year earlier.

This revelation comes shortly after Schroders injected nearly ￡9.9 million into the company during an extensive funding round for Revolut, which was lauded as an ambitious neobank by the asset manager back in the summer of 2021.

The decline in value could imply that Revolut's overall valuation is now $18 billion, a significant decrease from its previous peak of $33 billion following a funding round last year. Notably, this assessment mirrors a similar move by US-based investor TriplePoint, which estimated an almost 15 loss on their stake, dropping to $8.6 million from $10.1 million.

This downward adjustment rses concerns over investors' assessments of Revolut's true valuea company that has been lauded as a growth success story by UK political figures including Chancellor Jeremy Hunt.

Revolut's struggle with mntning its reputation is evident in recent criticisms surrounding late filing of accounts, EU regulatory breaches, and corporate culture. It also awts approval for its banking license from the UK authorities more than two years after submitting an application.

Despite these challenges, Revolut mntns that it doesn't engage in speculation on its valuation since its last funding round when it was valued at $33 billion. The company has consistently expanded operations in all markets, hired staff and increased services, reporting its first full year of profitability.

Revolut's rapid growth began with a prepd card offering free currency exchange which has now blossomed into a comprehensive financial services provider. It is the latest addition to the global fintech scene that continues to innovate digital banking solutions for consumers and businesses alike.

The Schroders Capital Global Innovation Trust hopes that its new pipeline of investment opportunities will continue delivering prospects similar to those of Revolut - young, innovative companies that they believe represent the leading growth businesses of the future.

Although the trust inherited its portfolio from former Woodford Patient Capital Trust after Neil Woodford's investment firm went bankrupt in 2019.

Despite slashing the value of three other unlisted companies, including Atom Bank online-only retl ler, Benevolent London-headquartereddrug discovery firm and AMO Pharma disease treatment developer, Schroders remns optimistic about newer investments.

Confidence remns high that this new idea pipeline will continue to deliver opportunities for exciting young innovative firms that represent the leading growth businesses of tomorrow, the trust's annual report states.
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