Mubadala, the Abu Dhabi sovereign investor, is in talks to snap up a $100m (£73m) stake in Revolut, the digital bank and payments group which is now valued at over £33bn.
Sky News has learnt that Mubadala is in advanced discussions to acquire shares in the company from existing investors.
If completed, the transaction would add to a smaller stake in Revolut which was bought by the Abu Dhabi fund last year as part of a wider secondary transaction.
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Mubadala, which declined to comment on Tuesday, is said to be keen to buy further Revolut shares when they become available, reflecting its confidence in the fintech’s ability to attract a significantly higher valuation in future.
The identity of the selling shareholders was unclear, although Balderton, the technology investor which has backed Revolut since early in its existence, is said to be among those which have been keen to monetise a chunk of their holdings.
Revolut announced a secondary share sale nearly a year ago, which saw founder and chief executive Nik Storonsky reap a windfall worth hundreds of millions of pounds by selling a small proportion of his shareholding.
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Major tech investors including SoftBank, Coatue and D1 Capital Partners are also among Revolut’s shareholders.
The Financial Times recently reported that Mr Storonsky was in line for a multibillion dollar payout if he succeeds in attaining a $150bn valuation for the company he set up a decade ago.
Revolut is in the latter stages of activating a UK banking licence awarded after fraught discussions between the company and regulators nearly a year ago.
“We are progressing through the final stages of mobilisation and continue to work constructively with the [Prudential Regulation Authority],” a spokesperson said.
“Given Revolut’s global scale, this is the largest and most complex mobilisation ever undertaken in the UK.
“A thorough review is an expected part of the process and getting this right is more important than rushing to meet a specific date.
“We are looking forward to launching a fully regulated UK bank for our millions of UK customers this year.”
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Revolut now boasts roughly 50 million customers globally.
Founded in 2015, it has experienced a string of regulatory and compliance challenges, with reports last year highlighting its release of funds from accounts flagged by the National Crime Agency as suspicious.
The company’s growth has taken place at breakneck speed, with customer numbers soaring from 16.4 million at the point of the Series E fundraising just over three years ago.
Attention has begun to shift to when and where Revolut will decide to become a public company.
New York is expected to be the preferred choice of its board and leading investors, with Mr Storonsky suggesting that London would be an illogical listing venue for a company of Revolut’s profile.
Revolut is chaired by Martin Gilbert, the City veteran who previously ran Aberdeen Asset Management.
Its other directors include Michael Sherwood, the former Goldman Sachs executive who was jointly responsible for its operations outside the US and who was regarded as one of the most skilled traders of his generation.
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Revolut declined to comment on Mubadala’s additional stake purchase.
