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Schroders slashes valuations of UK neobanks Revolut and Atom Bank

Schroders Capital Global Innovation Trust, which holds a stake in Revolut, has devalued its investment by 46%, suggesting that £12bn ($15bn) could be wiped off its $33bn valuation. The asset management firm has also marked down its stake in Atom Bank by 31%.

Facts

  • Schroders Capital Global Innovation Trust has devalued its stake in Revolut by 46%, down to £5.4m from £10.1m last year.
  • Schroders invested £9.9m into Revolut as part of its Series E funding round in July 2021.
  • The devaluation comes after Revolut released its annual report, which raised concerns about the verification of three-quarters of its revenue.
  • US-based investment firm TriplePoint Venture Growth also recently slashed the valuation of its holding in Revolut by 15%.
  • Schroders has also marked down its stake in Atom Bank by 31%.
  • However, Schroders is positive about Atom Bank’s outlook, as the firm continues to scale up and is now profitable.
  • Schroders believes that new capital raised by Atom Bank will support further growth through increased scale and new product launches, potentially delivering shareholder value over the medium term despite current volatile valuations.

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