Startups Revolut's valuation woes point to a stormy horizon for...

Revolut’s valuation woes point to a stormy horizon for less profitable neobanks

-

The Exchange goes on a hunt to understand what a key group of fintech startups is worth — or not — worth

While banking As the world watches as US lender First Republic goes into public turmoil after its earnings report described widespread evaporation of its deposit base, the neobank startup world is also taking a beating.

Earlier this week, Revolut, a highly rated UK-based neobank, saw its appreciation drop of about 46% in the eyes of one of the lenders.


The Exchange examines startups, markets and money.

Read it every morning on ukbusinessupdates.com+ or get The Exchange’s newsletter every Saturday.


Given that Revolut last raised $800 million in mid-2021 at a valuation of $33 billion, it stands to reason that it was probably overvalued at the time. will buy you a smoothie.

But Revolut took such a sharp valuation markdown nearly two years after it was last priced that made us sit up and take notice.

There was a time when the neobank-for-x-market was, after all, one of the most popular startup models. Tons of capital were invested in dozens of global startups looking to reinvent or at least innovate consumer and SME banking. It even led to some liquidity, including Nubank’s massive IPO and resulting 11-digit valuation.

Revolut’s revaluation raises a number of questions: How much trimming is left to do in the fintech world? And are we likely to see something similar more broadly in the neobanking startup sector?

This morning, we analyze what happened in an enterprise in the first quarter of 2023, as well as a handful of data points from F-Prime’s fintech index and subsequent reports. We then discuss the most recent neobank financial results we have and come to a conclusion about how much pain – or how little – neobanks can expect in the coming months. To work!

Subscribe to TechCrunch+Money in, money out

We have fintech funding data from CB insights for Q1 2023, but it has a huge asterisk. Without additional context, funding for fintech startups increased 55% from Q4 2022, amounting to a global total of $15 billion.

The caveat, however, is that Stripe’s latest $6.5 billion raise alone accounted for more than a third of that amount. Excluding that round, the total comes to $8.5 billion, representing a 12% quarter-over-quarter decline.

That’s the big picture. Taking a closer look at the fintech cohort, we’re curious to see which categories outperformed others. Such data on private companies is hard to come by, but we have some interesting insights on public companies.

Shreya Christinahttp://ukbusinessupdates.com
Shreya has been with ukbusinessupdates.com for 3 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider ukbusinessupdates.com team, Shreya seeks to understand an audience before creating memorable, persuasive copy.

Latest news

Mostbet Azərbaycan Orc Və Kazino Bonus 550 Azn Başlanğıc

Virtual Oyunlarda oyunçular oyunun müxtəlif aspektlərinə, məsələn, cümlə hesaba, vurulan qolların sayına, qalibə və s. Bu, oyunçulara mərclərini öz...

“pin Up 306 Online Casino Proloq Qeydiyyat, Bonuslar, Yuk

ContentAzərbaycanda Flag Upward Live CasinoIqtibas: Pin-up Bukmeker Kontorunun Üstünlükləri Və Mənfi CəhətləriSadiqlik Proqramı Pin Upwards – Pincoins Nədir?Pin Up...

Пин Ап Казино Официальный Сайт Pin Up Casino Онлайн

ContentElektron Cədvəl – Pinup-ın XülasəsiNəyi Tökmək Lazımdır: Saytın Mobil Versiyası Və Ya Bir Tətbiq?Etibarlılıq ProqramıPin Up: Kazino Va Rasmiy...

Лучшие Игровые Автоматы В Онлайн Казино Самые Популярные Слоты, Рейтинг 2024 незадолг

Лучшие Игровые Автоматы В Онлайн Казино Самые Популярные Слоты, Рейтинг 2024 незадолгоРейтинг Лучших Онлайн Казино 2024 года На Реальные...

такие Онлайн Казино Рейтинг Топ Казино для Игр

такие Онлайн Казино Рейтинг Топ Казино для ИгрыЛучшие Онлайн Казино 2024 ⭐топ Казино На Деньги от Casino OnlineContentКазино ОнлайнEverbet...

Mostbet-az 45 Azərbaycanda Bukmeker Və Kazino Bonus 550+250 คณะวิศวกรรมศาสตร์ มหาวิทยาลัยนครพนม

Mostbet nadir bukmeker şirkəti bahisçiləri cəlb eləmək üçün səxavətli “Sən buna layiqsən” bonus proqramı təqdim edir. Hesabı yaratdıqdan sonra...

Must read

You might also likeRELATED
Recommended to you