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Alphabet fund in talks over Monzo investment - Sky News

Alphabet fund in talks over Monzo investment - Sky News

Alphabet-backed fund Capital G is in talks to acquire a stake in Monzo as part of a funding round that could raise up to £500 million at a £4 billion valuation for the UK digital bank, according to Sky News.

Capital G is "close to an agreement" to lead the funding round, which could be concluded by the end of the year, says Sky, citing City sources.

The round could raise between £300 million and £500 million at a valuation of more than £4 billion. Last month, Sky reported that Monzo was in talks to raise £3000 million ta £3.5 billion valuation.

Monzo last raised money in late 2021, securing $500 million at a $4.5 billion valuation - three times the £1.1 billion price tag it attracted in its previous discounted capital-raise earlier that year.

After a rocky pandemic, the lender has bounced back strongly: it now has more than eight million customers and is expected to finally hit profitability this year.

Earlier this month, the British outfit hired former Cash App global product head Conor Walsh to lead a renewed push into the US market.

Over the summer it was also reported that Monzo was exploring a merger with Nordic peer Lunar in a bid to expand into Europe.

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