Challenger bank Monzo is reportedly closing in on a new funding round that would value the British fintech company at around £4bn.
The London-based digital bank, which has become one of the most popular financial service providers with more than nine million users, is in the late stages of a fundraise of up to £350m, according to sources close to the situation, first reported by the Financial Times.
The deal would reportedly land the company with a pre-money valuation of around £3.6bn and when including the new capital a valuation closer to £4bn.
CapitalG, an investment fund owned by Google parent Alphabet, is said to be leading the new round. Other expected participants include Chinese conglomerate Tencent, US-based Ribbit Capital and HongShan, formerly the Chinese arm of Sequoia, now a separate entity based in Beijing.
Monzo declined to comment on the reports.
Founded in 2015, Monzo was an early champion in the rise of challenger banks. The firm secured a UK banking licence in 2017 and has since become a popular choice for consumers in the UK, having been ranked first for customer satisfaction multiple times by the Competition and Markets Authority (CMA).
Monzo has raised more than $1bn in funding since its launch, with recent rounds including a $500m investment in December 2021, led by the Abu Dhabi Growth Fund. Other backers include Coatue Management, Alpha Wave Ventures and Passion Capital.
Last June, the neobank posted its first monthly profit, having narrowed its losses from the year prior.