New blow to Revolut: Finance boss steps down just weeks after auditor warned earnings may have been ‘materially misreported’
Financial technology company Revolut suffered another setback when its chief financial officer resigned after two years.
In what is proving to be a difficult year for the London company, the company said Mikko Salovaara is leaving “for personal reasons”.
It comes just weeks after the company’s accountant warned that some of its earnings may have been “materially misreported.”
At the time, Salovaara insisted that Revolut was on track to get a UK banking license “any day,” despite the questions over the finances.
But 72 days later, it’s still waiting. The company’s frustrations seemed to boil over last week when boss and co-founder Nik Storonsky said the licensing application was a “long and tiresome process.”
Departure: Revolut co-founder Nik Storonsky, left, with Chief Financial Officer Mikko Salovaara, right, who has stepped down after two years
In what was termed a “temper tantrum,” Storonsky also labeled Britain an undesirable place to do business.
Last night it also emerged that Revolut’s British bank chief, James Radford, resigned in March.
Salovaara is the latest senior figure to leave following the departure of several executives last year.
“I am grateful for the opportunity to serve as Group Chief Financial Officer at Revolut and am confident in the company’s future success,” he said.
Storonsky added: “I thank Mikko for his contribution and wish him well.” The Mail understands that Salovaara will remain with Revolut for a few more months.
The company was founded in 2015 by Storonsky and Vlad Yatsenko. It has 28 million customers and operates in more than 200 countries.
It is one of Europe’s most valuable start-ups, valued at £14bn, and has been trying for more than two years to get a UK banking license to take deposits and gift loans.
In March it said a license from the Financial Conduct Authority and the Prudential Regulation Authority would be granted “immediately” – and possibly within days.
But after questions from his accountant about his accounts, it’s still awaiting, with a final ruling expected in the coming weeks.
Last week, Storonsky claimed there was a “slow down” in British technology despite political ambitions to become the next Silicon Valley.
Storonsky also said he would choose New York over London if he ever went public with the company.
The comments raised some eyebrows in the city, with one analyst labeling them “sour grapes,” while another observer labeled it a “tantrum” that wouldn’t help it get a banking license.
The attack followed increased scrutiny from Revolut after its final accounts were five months late, with the auditor BDO stating some parts could not be independently verified, including three-quarters of its £636m revenue in 2021.
The company also suffered a setback in April when Schroders valued it at £14bn, a far cry from the £27bn price tag it boasted in its latest round of funding in 2021.
Growing doubts about the state of the company’s finances have led some to call on regulators not to be tempted into licensing the company without proper investigation.
Labor MP Margaret Hodge, chair of the parliamentary group for anti-corruption and responsible taxation, said: “Anyone who wants to join our banking community – Revolut is just one example – must follow due process and be able to answer all questions. questions from regulators. This process cannot be rushed.
“The recent turmoil in the industry shows how important it is for banks to be completely honest and comply with the rules.”