Monzo is reportedly in talks to raise £300 million at a valuation of £3 billion, a move that would spark a dramatic turnaround for the loss-making bank.
Citing people close to the matter, Sky News says that approximately £200m is expected to be provided by new shareholders, with the remainder coming from existing backers of the company.
A £3bn valuation implies substantial growth in Monzo's revenues, and would be almost three times the £1.1bn valuation achieved in its last discounted capital-raising earlier this year.
The news follows a series of damaging setbacks for the UK challenger bank, which last montth abandoned plans to acquire a US banking licence and in July issued another warning about its ability to continue as a going concern after reporting a £115 million loss for 2020/21. It also revealed that it is under investigation by the Financial Conduct Authority over its compliance with money laundering rules.