Europe's Most Valuable Startup
Revolut Reaches $115 Billion Valuation to Become Europe's Most Valuable Startup
Anonymous
Key Points
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Paulo Macedo, CEO of Portugal’s Caixa Geral de Depósitos, predicted that 2025 would be the last year the 150-year-old bank earned more profit than Revolut.
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S&P Global Ratings director Cihan Duran said European bank CEOs view Revolut as their “most important threat,” citing its aggressive marketing and growth.
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Revolut’s global expansion plans include markets from Mexico to Australia, and the company says it aims to become one of only a handful of banks with retail operations across such a wide range of countries.
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Konstantin Sidorov, CEO of investor group London Technology Club, described the US as a potentially major growth opportunity for Revolut but also its most competitive market.
Revolut has become Europe's most valuable startup, with a private valuation of $115 billion—higher than the market values of Barclays and Société Générale combined, according to Market Screener. The British neobank, which started as a low-cost currency-exchange app, is now pursuing full banking licenses across multiple countries and threatening the dominance of traditional European lenders.
But Revolut's path to profitability remains steep. Its 2025 pretax profit of £1.7 billion trails Barclays' £9 billion, and it earns far less per customer than established banks. The company faces regulatory hurdles, including a Lithuanian fine over anti-money-laundering controls, and intensifying competition as it expands into the United States.
Traditional Banks Warn of Revolut's Aggressive Threat
European bank executives now view Revolut as their "most important threat," according to S&P Global Ratings director Cihan Duran. The neobank's aggressive marketing and rapid customer growth have forced legacy banks to rethink their strategies. Yahoo Finance reported that some traditional lenders are already shrinking their retail operations in response to Revolut's expansion.
Caixa Geral de Depósitos CEO Paulo Macedo made a stark prediction: 2025 will be the last year his 150-year-old Portuguese bank earns more profit than Revolut. With the valuation now at $115 billion, Revolut has already surpassed the market capitalization of many blue-chip European banks despite lower absolute profits.
A Global Banking Empire Under Construction
Revolut is pursuing banking licenses across dozens of countries, from Mexico to Australia. The company aims to become one of only a handful of banks with retail operations spanning so many geographic markets. Market Screener noted that Revolut secured full banking licenses in the UK and France in the previous year, paving the way for expansion into regulated markets where it previously operated with lighter oversight.
The United States represents both Revolut's biggest growth opportunity and its toughest test. Konstantin Sidorov, CEO of the London Technology Club investor group, said the US market offers enormous potential but also faces "the most competitive" landscape. American banks, fintech companies, and established digital players will make it far harder for Revolut to gain traction than it did in Europe.
Profit Still Lags Despite Sky-High Valuation
Revolut's 2025 pretax profit of £1.7 billion sounds impressive—but Barclays earned £9 billion in the same period. The neobank earns less revenue per customer than traditional banks, a gap it must close to justify its $115 billion valuation. Market Screener reported that Revolut's revenue now comes from a diverse mix of products and services, not just currency exchange.
Regulatory challenges add another layer of risk. A Lithuanian fine over weak anti-money-laundering controls signals that rapid growth without robust compliance can invite penalties. As Revolut pursues licenses in new markets, regulators will likely scrutinize its controls more closely, potentially slowing expansion and raising compliance costs.
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