Early Revolut investors could now be millionaires

Early investors in the British financial technology company Revolut could be in line to net a £1million windfall following a change to the rules surrounding sales of the firm's shares.

Small investors who took a £1.68-a-share punt on the startup when it was formed eight years ago have the opportunity to sell their holdings for £681.24 each.

The average initial investment was £2,303, which would now be worth more than £900,000 - putting investors in a position to make a 404-fold profit.

The chance to cash in comes after rules were modified to allow those who bought in to the business using the Crowdcube platform, which enables investors to acquire equity in a business in return for their backing, to sell some of their shares.

Under the initial terms of a secondary share sale announced in August, only company staff were permitted to sell.

The scope of the sale has now been extended to include investors who made an early leap of faith as well as former employees.

'We are excited to announce that as part of our ongoing secondary process, Revolut is now able to confirm that [Crowdcube] shareholders will be eligible to participate in this next phase,' read an email sent to investors.

In the initial sale, which came after Revolut's three-year wait for a banking licence ended in July, institutional investors including Abu Dhabi's global investment firm Mubadala acquired a stake in the company for the first time. 

From humble beginnings, Revout has blossomed into one of Europe's most highly valued fintech companies.

The firm's original pitch, which attracted 433 individuals who put in a collective total of just over £1million, promised the elimination of hidden fees when managing foreign exchange transactions. 

Now that investment is set to reap dividends for those who took the plunge.

'We're incredibly proud that we are now enabling them to sell some of their shareholding in partnership with the team at Revolut,' said a spokesperson for Crowdcube. 

Nik Storonsky, meanwhile, Revolut's founder and chief executive, reportedly sold a chunk of shares worth as much as £230million earlier this year.

The Russian-born billionaire offloaded the stock in an employee secondary share sale, making between £153million and £236million.

He accounted for between 40 per cent and 60 per cent of the stock sold in August, according to reports.

Last month the company was valued at £35billion – more than Barclays and NatWest.

Revolut waited three years for a British banking licence after auditors said they could not verify the 2021 accounts, prompting Storonsky to attack the UK as a place to do business.

The licence means Revolut can hold customer deposits and offer new products such as credit cards, personal loans or mortgages.