Monzo announced on Wednesday all of its restrictions have officially been lifted and it is now a fully licensed bank. This news comes just the company raised nearly £2.4 million from close to 6,200 investors during its latest Crowdcube funding round.
As previously reported, Monzo raised funding on Crowdcube in March 2016. This earlier crowdfunding round secured £1 million in just 96 seconds as demand quickly outstripped the offer. Monzo (at one point in time operating under the name Mondo) has now raised £35 million in growth capital. The challenger bank is raising a total of £22 million in the Series C investment round, including a £19.5 million investment from Thrive Capital, £5 million from Passion Capital and £1.5 million from Orange Digital Ventures, along with the latest £2.5 million Crowdcube investment. While sharing details about Monzo’s latest milestone, the bank’s CEO, Tom Blomfield, stated:
“Over these two years, we’ve had some amazing successes: launching our Alphaand Beta prepaid cards, running the fastest crowdfunding campaign ever, receiving our restricted banking licence and, just recently, closing our second crowdfunding campaign with more than £12 million pledged. We’ve also continued to launch amazing features on our iOS and Android apps, like Monzo.me and Targets and we’ve pushed to be as open and transparent as we possibly can. None of this would have been possible without our wonderful community of users, who’ve given us feedback, supported us through everything and told their friends and families about Monzo. Thank you. Today, I’m delighted to announce that our banking license] restrictions have been lifted! Monzo is now a fully authorised, unrestricted bank. This is the result of an unbelievable amount of effort from the whole team here at Monzo, who I can’t thank enough for the time and energy they’ve poured in.”
Blomfield also noted that thanks to restrictions being lift, Monzo may now begin the process of bringing current accounts to existing users. The process will take the company a bit of time to ensure it can provide the best experience for its users. Monzo is now running live bank accounts with a small group of users, and it’ll slowly expand the group over the upcoming months.
“As we get used to running current accounts day-to-day, we’ll look to offer accounts to larger numbers of people over the summer, including groups like our recent investors and pre-registrants from the crowdfunding. At that point, you’ll need to go through a few simple steps, including agreeing to updated (and vastly simplified) Terms and Conditions. Once done, we’ll be able to send you a brand new Monzo debit card! Your balance will be transferred over and all of your existing data should be unaffected. You’ll get an account number and sort-code, and you will be able to make bank-to-bank payments and set up Direct Debits, as well as get your salary paid into your Monzo account.”
Blomfield went on to add:
“Please be patient! This process will take several months and we’re still working out some of the details. We’ll share more precise time frames and details transparently as soon as we know them. Your existing Mondo and Monzo cards will continue to work as normal for now and we’ll be in touch once we’re ready to offer you a current account.”
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