Molten Ventures Writes Down Revolut Stake by 40% Amidst Struggles for UK Banking License
Venture capital firm Molten Ventures has reportedly marked down its current holding in digital banking platform Revolut by a significant 40%. This development adds to the challenges faced by the fintech firm, particularly in obtaining a UK banking license.
Molten Ventures has devalued its substantial £7 million stake in Revolut from £91.3 million in March 2022 to just £54.5 million at the end of March 2023, as revealed in Molten’s annual report, which also shows other investments experiencing valuation reductions.
In a report, Martin Davis, the CEO of the company, acknowledged the shifting investing environment, particularly in the tech sector, which has been impacted by high interest rates driven by inflation.
Davis also highlighted that the write-down in Revolut’s value was influenced by recent concerns regarding the company’s struggles in obtaining a UK banking license and achieving profitability.
Revolut has been actively pursuing a UK banking permit for the past couple of years, but recent reports suggest that its application may be denied due to regulatory authorities’ concerns about the company’s balance sheet.
