A third investor in Revolut reduces the value of the company due to problems with accounting

Revolut founder Nick Storonsky became a multi-billionaire when the company hit a £24bn valuation in 2021. Credit: Piaras à MÃdheach/Sportsfile

An investor in Revolut has slashed billions from the financial tech company's $33bn (£26bn) valuation after cutting its stake in the company by 40 percent.

Molten Ventures investor , listed on the London Stock Exchange, wrote off £36.8 million. from his £91.3 million stake in a fintech company.

Molten has already valued its stake in Revolut at a discount of approximately 25% from the last public valuation of the cash app.

When Revolut raised funds from SoftBank in July 2021, Molten told the stock market that the deal implies that his stake is worth £119m, although the investor later clarified that he thought he was only worth £91.3m.

In its full-year results for the year ending March, Molten cut the cost further to £54.5m, down 54% from Revolut's July funding round two years ago. The drop suggests a corresponding total valuation of Revolut of around $15 billion.

The discount comes after The Telegraph previously reported that US investor Triplepoint Capital cut its stake in Revolut, while the UK-listed company Schroders also reduced its stake. regained her grade in April.

Fintech companies have been hit by falling values ​​amid the global economic downturn, higher interest rates and a broader downturn in the tech sector.

Revolut, which offers payments, current accounts and cryptocurrency trading, gave no guidance that he adjusted his internal estimate and did not cut jobs to reduce costs. The company said it was profitable in 2021 with a pre-tax profit of £39.7m.

Investors regularly revalue their private stakes in companies based on their peers and broader economic developments.

But the money app, founded by entrepreneur Nick Storonsky, was dealt a blow earlier this year when its auditors issued a qualified opinion on its accounts. The BDO's accountants said they could not be satisfied with the «completeness or presence» of revenues of nearly £477m. Revolut insists its balance sheet is accurate and calls the concerns a «technical issue».

The financial company has also experienced delays in obtaining a banking license in the UK. In March, the Prudential Regulatory Authority wrote to the Treasury Department explaining that it intends to reject Revolut's application.

Revolut and government officials are in urgent negotiations to try to save the license.

Molten first invested in Revolut in 2018 with a £7 million investment, meaning that his stake is still worth much more than it was when it first acquired the company.

The investor also recorded the value of his stake in other companies. He told investors in his full-year results that he believes his stake in Bristol-based semiconductor company Graphcore, worth £113.5m, is worth two-thirds less than a year ago.

He also slashed the value of his shares by 22%. at Ledger cryptocurrency company.

Molten said its portfolio is now worth around £1.2bn, down £240m from a year earlier.

Graham Cooke, interim chairman of the FTSE 250 company, said his results followed for «the most volatile period ever.» technology industry since the global financial crisis, if not the dot-com crash more than two decades ago.”

Martin Davis, chief executive of Molten, said technology valuations are gradually improving. He added: «We are cautiously optimistic about the year ahead as markets stabilize and recover in places.» Telegraph. Mr. Davies said Molten was «particularly excited» about opportunities to invest in new AI companies.

Mr. Davies said CityAM investors want to see «an increase in revenue in 2022» from Revolut and «clean reporting». , as well as «the visibility around the banking license in the UK.»

Revolut declined to comment.