UK’s challenger bank Monzo has finalized a heavily-trailed $400 million investment round, which has increased the firm’s valuation to $5 billion.
The funding round, an incentive for pushing the banking platform towards profitability, was reportedly led by Alphabet-owned Capital G, along with contributions from Google Ventures, HongShan Capital, and existing investors such as Passion Capital and Tencent.
Monzo had previously acquired funding back in late 2021, obtaining $500 million at a $4.5 billion valuation – 3x the £1.1 billion price tag it acquired in its previous discounted capital-raise earlier that same year.
This latest announcement comes as Monzo reports over 9 million personal account customers, making it the 7th largest retail bank in the United Kingdom by customer numbers.
After a challenging post-COVID market, the Fintech firm has managed to bounce back quite a bit, introducing a range of services for pension and investment as well as preparing for a move into the insurance sector.
Following years of posting major losses, the banking challenger is finally expecting to reach profitability during 2024.
TS Anil, CEO of Monzo stated:
“We’ve built incredible momentum in the business over the past few years. With backing from global investors, we have the rocket fuel to go after our ambitions harder and faster, building Monzo into the one app that sits at the centre of our customers’ financial lives.”
The proceeds will be channeled towards building out the product offering and for a renewed push into the US market, after the appointment this past year of ex- Cash App global product head Conor Walsh as US Chief Executive Officer.