A second investor in UK FinTech Revolut has shorn around 40 per cent off its valuation of the company as it struggles to obtain a UK banking licence.

Having made an investment of around £7 million in 2018, the latest financials of venture capitalist Molten Ventures reflects a valuation cut of around 40 per cent -- dropping from £91.3 million at the same financial period in 2022 to £54.5 million in the year ended 31 March 2023.

The move follows Schroders Capital Global Innovation Trust cutting its valuation of Revolut by around 46 per cent in April.

Revolut lodged an application for a UK banking licence in 2021 – a process which typically takes less than a year – having already received an EU banking licence through Lithuania in 2018 and a full banking licence from the European Central Bank in 2021. However, recent reports have suggested that the company’s hopes for a UK banking licence were to be dashed after rumours emerged that the Bank of England (BoE) was set to reject Revolut’s long-processing application.

Reports suggest a rejection of its application would likely come down to concerns over Revolut’s balance sheet after the FinTech’s own accountant BDO said it was unable to fully verify £477 million of the £636 million in recorded revenues outlined in its long-delayed 2021 financials due to “flaws in Revolut’s internal systems”.

The ongoing issues for Revolut have seen finance chief Mikko Salovaara step down from his role while chief executive Nik Storonsky blamed the current banking crisis for the licence delay and deemed the UK an “undesirable place to do business”.

Elsewhere, Revolut has announced the launch of Ultra, its top-tier membership plan first revealed earlier this year. The company said the new membership plan offers "exceptional perks" and is aimed at spearheading a new category of refined luxury.

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