Schroders slashes valuations of UK neobanks Revolut and Atom Bank
Revolut shareholder Schroders Capital Global Innovation Trust, part of asset management firm Schroders, has cut the valuation of its stake in the neobank by almost half – suggesting $15 billion (£12 billion) could be wiped off its $33 billion valuation.
Schroders devalues its stake in Revolut by 46%
In its annual results, the Trust has marked down its Revolut shareholding by 46%, down to £5.4 million from £10.1 million last year. In July 2021, Schroders invested £9.9 million into Revolut as part of its Series E funding round.
The devaluation by Schroders comes weeks after Revolut released its long-awaited annual report for year ending 31 December 2021, for which its auditor BDO had flagged concerns about not being able to verify three-quarters of its revenue.
However, a Revolut spokesperson told Reuters at the time the bank’s stated revenue “was not in question” and that the auditor’s concerns were “remedied in 2021”.
The move also follows US-based investment firm TriplePoint Venture Growth slashing the valuation of its holding in the UK-based neobank by 15% last month, according to media reports.
Schroders has also marked down its stake in another UK challenger, Atom Bank, by 31%. However, the asset manager is positive about the outlook for the firm.
“We are encouraged with the operational progress at Atom Bank. The business continues to scale up and is now profitable,” Schroders says.
“Any new capital that the bank raises is therefore supporting further growth through increased scale and new product launches, which has the potential to deliver shareholder value over the medium term notwithstanding the current volatile environment surrounding valuations of listed players in the space.”
