Venture capital firm Molten Ventures has written down its holding in Revolut by 40%. and discounted the value of its £7 million stake in Revolut from £91.3m in March last year to £54.5m at the end of March this year. Molten Ventures follows other investors, including Schroders, which devalued its investment in Revolut by approximately 46% in April. These recent events underscore concerns about Revolut’s path to profitability and the regulatory challenges it confronts.
The venture capital firm has faced a challenging year amid a tech stock sell-off, reporting a loss of £243 million in a recent trading update, compared to a profit of £301 million in 2022. Molten Ventures‘ CEO, Martin Davis, attributes the write-down to market concerns regarding Revolut‘s struggles in obtaining a UK banking license and achieving profitability.
Revolut has sought a UK banking license for the past two years. However, recent reports suggest that the company’s application could be jeopardized as regulators express concerns about its financial position. After a six-month delay, Revolut finally filed its accounts in March. Nevertheless, auditor BDO raised doubts about the company’s ability to verify £477 million in revenue and questioned the accuracy and occurrence of the reported figures due to Revolut’s internal IT systems’ configuration.
The write-downs by Molten Ventures and Schroders indicate the growing skepticism surrounding Revolut‘s financial prospects. These developments could impede Revolut‘s ability to attract future investments and undermine its reputation among potential customers and partners.
