Molten Ventures Sees Gains With Revolut’s $45 Billion Valuation

Molten Ventures, a fintech venture capital firm has announced that its stake in Revolut has increased. The firm’s £7 million investment rose to £160 million after the latest share sale which valued the SuperApp at $45 billion.

Last June, Molten Ventures had to lower the value of its investment in Revolut by 40% because people were worried about Revolut’s problems with getting a UK banking license and generating revenue.

Molten Raised The Value Of Its Investment To £65 Million By March 2024

Molten had reduced the value of its stake by 40% to about £54.5 million in 2023, as the values of some fintech companies dropped. But the company’s carrying value increased to £65 million at the close of March 2024.

A month ago, Molten revealed that it had successfully exited investments in Perkbox, Graphcore, and Endomag, with earnings that were equal to or higher than its holding values.

The company said all three exits showed how strong its valuation process is, which supports the group’s net asset value listed on the FTSE 250.

Davis stated that as the team expected from the recent update and final results, there are now more exits. This includes the recent exit from Graphcore and the earlier announced deals with Endomag and Perkbox.

Molten Is Planning To Review Its Net Asset Value (NAV)

This move slashed the value of the company’s share in Revolut from £91.3 million in March 2022 to £54.5 million at the end of March this year.

But now, things have changed for Revolut. Last year, it recorded a profit of $545 million in pre-tax and finally acquired the banking license.

Some weeks ago, Molten announced that it had secured a new £180 million loan deal. The company acquired the loan from HSBC Innovation Banking and J.P. Morgan Chase Bank.

It includes a £120 million loan taken out on the first day and a credit line of up to £60 million, both lasting three years. This replaces the current £150 million facility with HSBCIB and JPM.

The Chief Executive Officer of Molten, Martin Davis, stated that Revolut has been improving day by day. He added that it’s amazing that the company can now be able to reward its staff for helping it grow.

Molten Ventures, previously called Draper Esprit, is a VC company that invests in fast-growing tech firms with big goals. It has branches in Dublin, Cambridge, and London and the company is also on the London Stock Exchange and is part of the FTSE 250 Index.