US private equity firm foiled in effort to build stake in Revolut

An attempt by a US private equity firm to boost its stake in the $45 billion financial app Revolut, ahead of a long-awaited stock exchange float, has been scuppered by the Financial Conduct Authority.
Jamba Europe — in effect owned by New York-based HOF Capital — had been trying to buy the shares from Revolut investors through the private trading platform formerly known as Seedrs, now called Republic.
However, the City regulator raised concerns that the offer was at risk of being regarded as a “financial promotion”, which would need specific FCA approval.
Jamba’s attempt to buy stock followed a sale of shares by Revolut’s staff in August, which, the fintech company said, valued it at $45 billion (£35 billion). At such a valuation, Revolut, founded by entrepreneurs Nikolay Storonsky and Vlad Yatsenko in London in 2015, would be worth more than NatWest.
Shares platform Republic said it did not agree with the FCA’s ruling, but had decided to cancel Jamba’s offer for now. It is not known how many shares Jamba wanted to buy.
HOF Capital could not be contacted and Revolut and the FCA declined to comment.
The August share sale came just weeks after Revolut secured a banking licence in Britain after a three-year application process. The buyers in that move included Coatue, an investor in Stability AI, and existing backer Tiger Global.
Revolut’s banking licence is seen as paving the way for an eventual float on the New York Stock Exchange, although the Labour government is said to be trying to persuade Storonsky to list in London instead.
The company has grown rapidly and now has 45 million customers who use its cards and app, through which they trade shares and cryptocurrencies and even make hotel bookings. In 2023, it made profits of $545 million on revenues of $2.2 billion.