Mobile banking startup Monese has booked a £30.5 million loss in accounts filed for 2022 and warned of its ability to continue as a going concern unless it can raise additional funds.
London and Tallinn-based Monese targets expats and immigrants who typically struggle to get a traditional bank account.
In accounts filed with Companies House, the finech posted losses of £30.5 million, 70% up on the previous year. Revenue stood at £27.7 million, up from £17.6 million in 2021, while costs increased significantly for the year to £26.8m (£2021: £17.2m).
Part of this is related to a strategic pivot to supply a core banking platform service to institutional customers. The business, dubbed XYB, is offered purely as a technology subscription, or with added operational support such as onboarding and customer support.
The financial statement concludes with a warning that the business is reliant on access to sufficient amounts of new funding to finance its current operations and growth plans.
"The group faces the risk that should such funding not be available, the ability of the group to conduct its operations in their current form will be adversely and potentially severely affected. As the going concern status of the company is dependent upon securing funds and upon the performance of the business against forecasts and cash flow projections, the directors are of the opinion that the matters described above represent material uncertainties, as actual outcomes may differ to expectations."
The group last raised equity funding of £42.3m with the final round of its Series C funding in January 2022, bolstered by a $35 million strategic investment from HSBC in September 2022.
The filing states that the directors have a "reasonable expectation" the company will continue to be successful raising additional funds, adding that it "has access to adequate resources to fund operations for at least twelve months".