- Revolto said CFO Mikko Sarovara was stepping down for personal reasons and an interim head would be announced in due course.
- A Revolut spokesperson said Sarovara’s decision was unrelated to concerns raised by audit firm BDO about the company’s 2021 financial accounting.
- BDO said in March that it could not independently confirm three-quarters of the £636m ($795m) in revenue the company reported in its delayed 2021 earnings.
The Revolut logo displayed on a smartphone.
Igor Golovniv SOPA Images | Light Rocket (via Getty Images)
LONDON — Mikko Sarovara, Chief Financial Officer of Revolut, is leaving the digital bank after two years, citing personal reasons.
“I am grateful for the opportunity to serve as Group CFO at Revolut and remain confident in the company’s continued success,” Sarovara said in a statement sent to CNBC via WhatsApp.
With a $33 billion valuation, privately held Revolut is one of Europe’s most valuable fintech companies. We offer commission-free checking accounts, foreign exchange, stock and cryptocurrency trading, insurance, travel booking and more.
“We thank Mikko for his contributions and wish him every success in his next steps,” Revolut CEO Nick Stronsky said.
A company spokesperson told CNBC that Sarovara has resigned but has not been fired. He said it was inappropriate to reveal the personal reasons that led to his resignation.
A Revolut spokeswoman said Mr. Sarovara’s decision was not related to concerns raised by auditing firm BDO about the company’s financial accounting.
BDO said in March that it could not independently confirm three-quarters of the £636m ($795m) in revenue the company reported in its delayed 2021 earnings.
In its latest annual report, Revolut achieved its first-ever full-year profit, posting a pre-tax profit of £59.1m on revenue of £636.2m. In 2020, Revolut posted a pre-tax loss of £205m.
The company was late in filing its financial statements to the UK company register, Companies House, in time for the December 31 deadline. These were finally approved by Revolut’s auditor, the BDO, in February.
A spokeswoman for Revolt said the company had a “strong financial” team in place and would soon announce an interim head to replace Sarovara.
Revolut has long sought a UK banking license. The company began applying for a banking license in 2021, but has recently complained about delays, including Chief Executive Stronsky accusing regulators of delaying the application.
“It’s hard to do business in the UK,” Stronsky said in an interview with The Times published last week, adding that the company would not consider a London listing.
“In the UK you have high taxes to pay and a very bureaucratic regulator,” Stronsky told the magazine.
According to The Times, he and co-founder Vlad Yatesonko said complex and unclear regulatory requirements are hampering global competition, and that the UK has been a tough spot for talent since Brexit and the coronavirus pandemic. He said it has become a less attractive place.
Sarovara’s decision to step down cast doubt on the company’s plans for an eventual stock market listing. Revolut recently had its valuation cut by about 46% by asset manager Schroders, reflecting the tough investor mood surrounding the fintech market.
