Revolut Partners with Mubadala to Propel Strategic Growth in the Gulf Region

Mubadala, the sovereign wealth fund of Abu Dhabi in Partnership

Mubadala, the sovereign wealth fund of Abu Dhabi, has made its inaugural investment in Revolut, a global neobank, as part of a share transaction that valued the company at US$45 billion. The sale of US$500 million in shares by Revolut employees was alleged to have occurred in August. Mubadala, as well as other significant investors such as Coatue, D1 Capital Partners, and Tiger Global, were involved in the transaction.

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Revolut’s founder and CEO, Nik Storonsky, reportedly sold US$200 million to US$300 million of his own shares during the sale, which accounted for approximately half of the total. However, the precise scale of Mubadala’s investment remains undisclosed. The proceeds from his sale are anticipated to be used to support his venture capital firm, QuantumLight, which concentrates on investments that are propelled by artificial intelligence. Storonsky’s stake in Revolut was valued at roughly US$8 billion prior to this transaction.

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Revolut is preparing for additional growth in the Gulf region

The company has submitted an application for licenses to operate as an electronic money institution with the Central Bank of the United Arab Emirates (UAE) in order to provide remittance services. Revolut’s ultimate objective is to obtain a complete banking license in the UAE, which is consistent with its recent approval in the United Kingdom. Revolut established a presence in the United Arab Emirates in 2022, with 140 employees residing in its Dubai office. A significant number of these employees were relocated from Ukraine as a result of Russia’s invasion. Revolut’s CEO, Nik Storonsky, has expressed his desire to expand in the Gulf region, where the company presently lacks the requisite licenses to allow customers to establish accounts. Furthermore, the fintech is investigating potential opportunities to expand into Saudi Arabia, its neighbor.

Revolut has already expanded into emerging markets such as Mexico, Brazil, and New Zealand. The company is currently pursuing additional growth in India, another market that is of strategic significance to UK trade. Revolut, which was established in 2015, has expanded rapidly internationally and has amassed a valuation of US$45 billion. The company serves more than 45 million consumers worldwide.