Revolut has struck a deal to move its global headquarters to one of Canary Wharf’s most prominent buildings, as the fintech giant grows its presence in London’s financial district amid a long struggle to secure a UK banking licence.
The company said on Thursday that it would relocate to the YY London building, with a 10-year lease. The move is due to take place in May 2025.
While Revolut is already headquartered in Canary Wharf, moving to 7 Westferry Circus in 2018, its new base will put it at the heart of the iconic banking district and accommodate its swelling staff numbers.
Its office footprint in London is set to increase by more than 40 per cent to 113,000 square feet, taking up four floors of the new building.
Revolut expects to grow its global headcount by around 40 per cent in 2024 as it pushes for rapid expansion. The firm reached 10,000 employees worldwide in April and plans to boost this number to 11,500 by the end of the year.
The YY building has become a landmark of the Wharf since it was built in 1991. Originally designed by Kohn Pedersen Fox for the Canary Wharf Group, it was purchased by real estate fund manager Quadrant and investor Oaktree Capital Management in 2019.
In 2020, the firms secured planning permission for a major refurbishment that was completed last year, giving the building a new facade, café, restaurant and a rooftop garden.
It is now set to don a large sign with Revolut’s logo, in a similar vein to HSBC and Barclays, although this feature is subject to planning permission.
Revolut said it conducted a “city-wide search” for its new London base and chose YY London for its “its best in class workspace, nearby amenities and leading ESG credentials”.
The firm’s commitment to Canary Wharf comes at a difficult time for the district. Post-pandemic remote working trends have shattered the value of its office space, with vacancies expected to hit 16.6 per cent in the fourth quarter of 2024 – up from 15 per cent in the same period last year, according to CoStar.
Star tenants HSBC and law firm Clifford Chance are due to leave by 2026 and 2028 respectively as part of downsizing efforts, although Wall Street giant Morgan Stanley has added another decade to its lease.
Nikolay Storonsky, co founder and chief executive of Revolut, touted the new base as being “in the centre of London’s financial district”.
Francesca Carlesi, Revolut’s UK CEO, added: “This new head office strengthens our commitment to the UK, our home country, whilst also establishing the foundation to support future growth.”
Revolut, founded in 2015, became the UK’s biggest fintech firm in 2021 after landing a $33bn valuation in a funding round led by SoftBank. Its implied valuation by Schroders dropped to as low $18bn in 2022 but rose to around $26bn at the end of last year.
A major boost to Revolut would come from securing a UK banking licence from City regulators, allowing it to offer products like mortgages and credit cards in its home market.
The process typically takes one year, but Revolut has been waiting for more than three amid audit issues, criticism of its corporate culture and the delayed filing of its accounts.
Revolut’s banking app now boasts more than 40m users globally, while its UK customer base recently hit nine million.
“Revolut’s phenomenal rise is a powerful testament to the extraordinary environment we have created for the world’s leading and most innovative companies,” said Shobi Khan, CEO of Canary Wharf Group.