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Monzo pockets another £60 million in funding

Monzo pockets another £60 million in funding

UK challenger bank Monzo has picked up another £60 million in funding from a clutch of new backers including Deliveroo and Stripe investor Novator, Kaiser, and TED Global, as well as existing investor Goodwater.

Monzo has yet to comment publicly on the raise, but according to TechCrunch the new capital is an extension of its previous funding round of £60 million, secured in June.

Like that capital raise, the new money puts a revised valuation on the app-based bank of £1.25 billion - a 40% discount on its previous sky high price tag of £2 billion.

The bank has been striving to raise revenues as the pandemic blew a hole in its previous - and costly - customer acquisition strategy. With a new CEO at the helm, Monzo has moved to cut out interest rate freebies for currency transfers, introduced fee-paying services and released two new premium accounts.

According to figures shared with TechCrunch, in addition to approaching five million customers overall, Monzo now has more than 60,000 business users — up from 25,000 signups in June — and more than 100,000 customers across its paid-for current accounts, Monzo Plus and Monzo Premium.

Adds Monzo CEO, TS Anil, in a statement given to TechCrunch: “We’ve raised £125 million this year, achieved strong organic growth and are now nearing five million customers, all while becoming the most switched to bank in the UK and the top rated for overall service. This news demonstrates the confidence that both our customers and investors have in Monzo."

Comments: (1)

A Finextra member
A Finextra member 03 December, 2020, 00:23Be the first to give this comment the thumbs up 0 likes

Much needed from the sounds of it. Monzo's reliance on FX income hit them hard during this pandemic.