British fintech group Revolut’s boss Francesca Carlesi left the prospect of a London initial public offering on the table in an interview with Bloomberg on Wednesday, though warned that the capital’s status as a global fintech leader faces challenges.
Carlesi, alongside executives from Monzo, Zilch, Aquis and other UK-based fintech companies, this week launched a new independent industry body Innovate Finance.
Innovate aims to “unlock promised growth” in the UK fintech space by lobbying for policy reforms.
The move comes as the sector faces declining investment, with Innovate data showing that UK fintechs attracted $5.1 billion (£4 billion) across 409 deals in 2023, a significant drop from $14.6 billion in 2022.
Though governmental support for UK fintechs remains strong, Innovate member Jay Wilson from Albion VC warned that “on the ground fintechs are finding it hard to navigate regulatory permissions”.
Carlesis reiterated this sentiment to Bloomberg, stating that, despite London leading on digital bank launches post-global financial crisis, “something has shifted in the last two or three years”.
However, “the UK is our home and is also one where a lot of our investors come from”, she stated. “We know that companies are always better off to list where their biggest market is.”
Revolut was valued at $33 billion (£26 billion) in a 2021 funding round.
Per the latest Companies House filings, the group generated £744 million worth of revenues in the year ending 31 December 2022 on an 82% gross profit margin.
Losses before tax exceeded £23 million.
TS Anil, boss of Monzo, another prominent UK fintech, yesterday said it was “too early” to discuss the idea of a public market debut.