Monzo scores £71 million funding round

Digital challenger bank Monzo has raised £71 million from Goodwater Capital, Stripe and Michael Moritz,

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Monzo scores £71 million funding round

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The new investors join existing backers Passion Capital, Thrive Capital and Orange Digital Ventures, who have each made follow-on investments.

As in previous rounds, Monzo has also reserved £1.5 million worth of shares for existing crowd investors to up their stake. A fresh crowdfunding round for new investors is also in the works for 2018.

It's been a busy year for Monzo, which has started to roll out its first current accounts and seen its prospective user base grow from 100,000 people to nearly half a million.

The business continues to be a loss-making enterprise, however, as it moves customers away from its expensive-to-maintain pre-paid card model to the new current account. Once migration is complete, the bank says it will look to introduce new revenue-generating features, with the aim of turning a profit by end-2018/early-2019.

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