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Tencent takes stake in Monzo as part of $100 million capital injection

Tencent takes stake in Monzo as part of $100 million capital injection

Chinese technology behemoth Tencent has taken a small stake in Monzo as part of a $100 million top-up to the UK challenger's recently announced $500 million funding round.

Monzo confounded markewatchers in December by raising more than $500 million at a $4.5 billion valuation - three times the £1.1 billion price tag it attracted in its last discounted capital-raise earlier in the year.

The funding comes as Monzo appears to be on the verge of a new growth curve, doubling revenues last year and signing up around 100,000 new customers a month. The bank has more than five million customers, including 300,000 using paid accounts, with Business accounts recently topping 100,000.

Abu Dhabi Growth Fund led the initial round, with participation from Coatue and Alpha Wave Ventures, Accel and Goodwater.

Tencent's entry was broken by Sky News, which reports from sources close to the process that the Chinese firm is investing a minority of the $100m capital injection.

Tencent has a growing fintech portfolio, with investments in Argentine personal finance app Ualá, Digital wealth manager Scalable Capital, French startups Qonto and Lydia, and challenger banks such as Germany's N26, Brazil's Nubank and Tyme of South Africa.

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