Abu Dhabi’s sovereign wealth fund, Mubadala, has made its first investment in global neobank Revolut, as part of a share sale that valued the company at US$45 billion.
The transaction, reported to have taken place in August, involved the sale of US$500 million worth of shares by Revolut employees.
Mubadala, alongside other key investors like Coatue, D1 Capital Partners, and Tiger Global, participated in the deal, according to sources cited by Financial Times.
While the specific size of Mubadala’s investment remains undisclosed, Revolut’s founder and CEO, Nik Storonsky, reportedly sold US$200 million to US$300 million of his own shares during the sale, which made up about half of the total.
Proceeds from his sale are expected to fund his venture capital firm, QuantumLight, which focuses on AI-driven investments.
Before this transaction, Storonsky’s stake in Revolut was valued at nearly US$8 billion.
Revolut is also gearing up for further expansion in the Gulf region at the same time.
According to Bloomberg, the company has applied for licenses with the Central Bank of the United Arab Emirates (UAE) to operate as an electronic money institution, with plans to offer remittance services.
Revolut’s ultimate goal is to secure a full banking license in the UAE, mirroring its recent UK approval.
Revolut established a presence in the UAE in 2022, housing 140 employees in its Dubai office, many of whom were relocated from Ukraine following Russia’s invasion.
CEO Nik Storonsky has been vocal about his ambitions to grow in the Gulf, a region where Revolut currently lacks the necessary licenses for customers to open accounts.
Additionally, the fintech is exploring opportunities to expand into neighboring Saudi Arabia.
Revolut has already expanded into emerging markets like Mexico, Brazil, and New Zealand, and is now eyeing further growth in India, another market of strategic importance to UK trade.
Founded in 2015, Revolut serves over 45 million customers globally and has achieved a US$45 billion valuation amid its rapid international expansion.
Featured image credit: Edited from Freepik
