Moneybox, GoCardless, Revolut, and Monzo Lead the Rise in Secondary Share Sales

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Two of the UK’s most promising fintech startups, Moneybox and GoCardless, are now the latest in a series of high-profile companies to engage in secondary share sales, following in the footsteps of Monzo and Revolut. These secondary sales have gained popularity within the startup ecosystem as they offer existing shareholders an opportunity to cash out a portion of their investments, while simultaneously allowing new investors to acquire stakes in these rapidly growing companies.

Moneybox, a savings and investment app founded in 2015, has been at the forefront of digital financial services, boasting over one million customers. The company has just announced that its valuation has nearly doubled, reaching £550 million. This comes on the heels of a £70 million investment led by Apis Global Growth Fund III and Amundi, a major European asset manager, both of which have now joined Moneybox’s roster of investors.

A significant portion of this £70 million investment will be facilitated through a secondary share sale, with current investors offloading 10-15% of the company’s existing share capital. Moneybox’s shareholder base, which includes a sizable group of 35,000 participants—ranging from crowdfund investors to retail investors and employees—will all have the option to sell up to 10% of their holdings. Ben Stanway, co-founder and executive chair of Moneybox, explained that this share sale offers a unique chance for shareholders to realize the value of their investments. “We are able to facilitate this secondary share sale to recognize the hard work of our team and also our investors, many of whom have supported us since inception,” said Stanway, emphasizing that it’s an important moment for both employees and backers to benefit from the company’s growth.

Moneybox’s financials reflect its impressive performance. For the fiscal year ending in May 2024, the company reported a pre-tax profit of £27 million, a dramatic reversal from a £4.1 million loss the previous year. In that same period, revenues skyrocketed from £29 million to £77 million, highlighting the company’s rapid expansion.

As part of this transition, Moneybox’s leadership has seen some changes. Laurel Powers-Freeling, who had been serving as the independent chairwoman since October 2021, stepped down following the conclusion of her three-year contract. Powers-Freeling, a former head of Marks & Spencer Financial Services, has now taken on the role of leading the Bank of England (BOE) and Prudential Regulation Authority (PRA) cost-benefit analysis panel. Ben Stanway will now assume her responsibilities as chair, while continuing to serve as co-CEO.

Meanwhile, GoCardless, a payments platform that enables businesses to collect one-off and recurring payments through direct debits, is also coordinating a secondary share sale. The company, founded in 2011, provides an alternative to traditional payment methods like credit cards or bank transfers, and has been instrumental in enabling seamless payments for businesses around the world.

Reports suggest that GoCardless, which was valued at around $2 billion in 2022, is set to carry out a substantial secondary share sale that could result in a £100 million-plus windfall for its employees. It’s estimated that up to $200 million worth of stock could change hands as part of this process. GoCardless is backed by several well-known investors, including Accel, Balderton, and Notion Capital, although the company has declined to provide specific comments on the ongoing sale.

The strategic decision to engage in secondary sales mirrors a broader trend in the fintech industry, where fast-growing companies use these transactions as a means to reward early stakeholders and bring in new capital. For employees, secondary share sales offer the chance to realize value from stock options that may have been granted early in their tenure, helping to retain talent and foster a sense of ownership.

The moves by Moneybox and GoCardless are part of a larger wave of secondary share sales sweeping through the UK’s fintech scene. Monzo and Revolut, two of the UK’s most well-known digital banks, have also engaged in secondary share sales in recent years. This trend is driven by the need for liquidity in an industry where startups often stay private longer, postponing public offerings. For investors and employees alike, secondary sales provide a way to extract some value without waiting for an IPO, which may be years away.

Secondary sales also help attract new investors who are eager to gain exposure to these high-growth companies but may have missed out on earlier funding rounds. By facilitating such sales, companies like Moneybox and GoCardless can maintain momentum, increase their valuations, and continue to invest in their growth strategies.

With Moneybox nearly doubling its valuation and GoCardless continuing to attract significant investor interest, both companies are poised to play a major role in shaping the future of the UK’s fintech industry. As they navigate their secondary share sales, these companies are demonstrating that growth and liquidity can go hand in hand, offering a clear path for rewarding employees and investors alike.

For now, both startups remain focused on their missions: Moneybox continues to empower people to save and invest for their futures, while GoCardless remains a key player in simplifying payments for businesses across the globe. However, with new capital and fresh investors on board, their next phases of growth could take them to even greater heights.