UK’s digital bank Monzo is reportedly expected to reach a substantial £4.5 billion valuation through a potential employee share sale. This is according to a recent report by Sky News.
It is worthwhile to note that Monzo, in its early days of existence, raised money on a crowdfunding platform. The first sale was around eight years ago, and investors bought shares at a valuation of a mere £28 million.
Hundreds of company workers may potentially cash in on the deal, with tens of millions of pounds in Monzo company stock which are quite likely to be sold off, according to the report.
Current investors StepStone Group as well as Singapore state fund GIC are now reportedly interested and offering to buy the shares.
The valuation is up considerably on the £4.1 billion value that had been reached during a £500 million+ investment round completed earlier this year.
Monzo now claims over 10 million personal account clients, making it one of the largest and most prominent retail banks operating in the United Kingdom in terms of overall customer numbers.
Following a post-pandemic struggle period, the UK Fintech has managed to recover quite strongly, while introducing various services for pension and investment and getting ready for a move into the insurance sector.
Following years of posting considerable losses, the Fintech firm is now expecting to reach profitability soon.
It’s worth noting that Monzo competes for market share in a very crowded UK and European Fintech market that includes innovative Fintechs such as Starling Bank, Revolut, Allica Bank, Atom Bank, among many others. Notably, the UK’s Fintech sector is amongst the fast-growing financial tech ecosystems although it does face a bit of competition from other jurisdictions such as the US and UAE.
Recently, Monzo announced its increased focus on European markets with a sizeable investment into its Ireland-based business operations.
