Revolut is a UK-based Fintech company that provides banking services to its client. The company was founded in 2015 by Nikolay Storonsky and Vlad Yatsenko. The services they provide include currency exchange, credit card, and debit cards. With time the evaluation of this company has grown manifold. It has benefitted its shareholders immensely. But not only that it has managed to make 70 of its employee into a millionaire. So, let's look at how Revolut turned 70 employees into millionaires.
Revolut is a fintech company based in London, founded by two Russian entrepreneurs Nikolay Storonsky and Vlad Yatsenko. This company provides various banking financial services to its customers. The prominent services they provide are debit cards, credit cards, and virtual cards. They have also started providing services in free stock trading, crypto, etc.
Recently it has started expanding in Japan in the year 2020. In the same year, they increased their employees from 1500 to 5000. It is now one of the most valuable companies in Britain. Today it is the fastest-growing fintech startup.
How Did Revolut Help 70 Employees Turn Into Millionaires?
Revolut has been giving services of credit cards, debit cards, and many other banking services. With time, it has grown more and more. It also provides quality services.
Being a fintech company with smart products, it has successfully acquired the whole market. In due course of time, they have provided profit to their shareholders and also provided ESOP to their employees.
Implemented Shrewd Business Model
They grew quickly within a single year. As many as 10,000 users registered with them. Till now because of their shrewd business method they have made 70 of their employees into millionaires. In the initial days, the company had given its employees a good percentage of ESOP. This was done to encourage them to work harder and they too would become rich with the company.
Issued ESOP To Its Employees
With time, the company grew and it not only paid its actual shareholders but also made its employees rich as well. A lot of new employees also joined and have also opted for ESOP. This is why there might be more employees who turn out to be millionaires.
But all these things are on paper only. It is not so easy to sell these shares. Revolut is not yet listed on any stock exchange. This is why it is not so easy to monetize them.
At present, the company is allowing its employees to only take out parts of their shares. In reality, the employees have to sell their shares at a discounted price. But even in this case, it is making them rich.
The Revolut Share Sale Controversy
Revolut has issued shares to its employees when they joined the company. Now when the company has grown, the company has allowed their employees to sell some amount of their shares.
To be specific, they have allowed their employees to sell 20% of their shares and allowed their former employees to dilute 10% of their shares. But it is not as simple as it looks. To monetize their shares, they need the help of a special agent.
They also have to sell their shares at a discounted price than the original one. If they want to take the help of an agent, then fees will also be charged from them. This is why they have to pay extra money to sell their shares. This is causing a lot of discontentment among its employees. Many of the employees complained that the shares were not getting sold. Others complained about the discounted price.
But in reality, these things are completely justifiable. First of all, it is a big luxury for people to sell shares of a new company. This is why it is completely fine to do it this way. Though they have to sell their shares at a discounted price the amount of money they'll receive is huge.
In the year, 2020 when the company was facing some slowdown due to the pandemic, they fired many employees. It was said that Revolut forced their employees to either resign on their own or they would fire them.
This was the case study on how Revolut helped 70 employees turn into millionaires. If you are an entrepreneur, you can implement these learnings in your startups as well. Hope these learnings will help you grow your startup to new heights.
What is Revolut?
Revolut is a fintech company that provides various banking financial services to its customers. The prominent services they provide are debit cards, credit cards, and virtual cards. They have also started providing services in free stock trading, crypto, etc.
How many employees does Revolut have?
Revolut currently has a workforce of over 3000 employees.
How Did Revolut Turn 70 Employees Into Millionaires?
Revolut made over 70 employees into millionaires by implementing a shrewd business model in the organization. They also had an entrepreneurial culture that made their employees strive to be millionaires and work hard. They also gave their employees ESOP that they turned into millionaires.