Monzo raises additional £60m in funding
Monzo, the UK challenger bank which now has more than 4.8m customers, has raised another £60m in funding.
The new funding, which saw Monzo valued by private investors at around £1.2bn, comes from new backers including Deliveroo and Stripe investor Novator, Kaiser, and TED Global, as well as existing investor Goodwater.
Monzo has raised £125m in funding since the start of the pandemic, and the new monies will be seen as a success for the lender as it looks to continue growing and increasing revenue lines beyond interchange fees.
According to TechCrunch, Monzo now has more than 60,000 business users, up from 25,000 signups in June, and more than 100,000 customers across its paid-for current accounts, Monzo Plus and Monzo Premium.
In remarks made to TechCrunch, Monzo chief, TS Anil, who took up the role earlier this year, said: “We’ve raised £125m this year, achieved strong organic growth and are now nearing five million customers, all while becoming the most switched to bank in the UK and the top rated for overall service. This news demonstrates the confidence that both our customers and investors have in Monzo.”
Despite the positive news, Monzo has also been negatively impacted by Covid-19 this year and had to apply for the UK government’s furlough scheme and made 80 employees redundant in the summer. In addition, there was a round of US layoffs and the shuttering of its Las Vegas-based customer support office.
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