Team_Monzo

Challenger bank Monzo has announced a £19.5m Series B round from venture capital firms Thrive Capital, Passion Capital and Orange Digital Ventures.

The bank, which was founded in 2015, was given a pre-money valuation of £65m.

Monzo is a digital-only banking service which currently offers users prepaid bank cards, but it hopes to soon provide current accounts and overdrafts.

The FinTech firm has reserved a further £2.5m in this latest funding round for a campaign via Crowdcube, a crowdfunding investment platform.

The news comes after Monzo announced a £4.8m investment from Passion Capital in October 2016.

Tom Blomfield, Monzo CEO, said the response to last year’s crowdfunding campaign – when the firm claims to have raised £1m in 96 seconds – was “incredible”.

He said: “I’m delighted to announce that we’ll be able to bring on even more crowdfunding investors as part of this round. We’re expecting 4,000 or 5,000 people to get the opportunity to invest.”

Monzo says it aims to move away from traditional banking models in the future, giving customers one-click access to third-party financial products as part of a move toward “banking as a marketplace”.

Miles Grimshaw, principal at Thrive Capital, said: “Consumers are used to the ease and convenience of offerings like Amazon, and they expect the same from their bank. Building a modern bank from front to back is an incredible challenge, and we haven’t met a better team to take it on!”

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