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Monzo on course to raise a further £50 million

Monzo on course to raise a further £50 million

Monzo is raising a further £50 million in equity funding from existing shareholders and one new investor, Silicon Valley firm Octahedron Capital.

The new capital, which is an extension to its previous round, takes the amount raised by the UK-based challenger bank during the pandemic to £175m.

The bank has been striving to raise revenues after 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 the most recent figures, Monzo currently claims some five million customers. The company also has more than 70,000 business users and more than 100,000 customers across its paid-for current accounts, Monzo Plus and Monzo Premium, with revenues up by 30% since the start of the Covid crisis.

The top-up is the second to Monzo's initial £60 million round from June last year, following a £60 million capital injection in December. The new funds come at the same discounted valuation of £1.24 billion.

Comments: (1)

Nick Johnson
Nick Johnson - Fontis Search & Selection - London (Farringdon) 08 February, 2021, 17:20Be the first to give this comment the thumbs up 0 likes

Closing in on OakNorth &N26 in terms of size/value..