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Digital challenger bank Monzo raises £71m at £280m valuation

UK digital challenger bank Monzo has raised an additional £71m from investors including Goodwater Capital and Stripe.

Welsh-born VC Michael Moritz also invested through his charitable investment vehicles, alongside existing backers Passion Capital, Thrive Capital and Orange Digital Ventures.

Monzo, now valued at £280m, says its user numbers have increased by almost 300% since its last fundraise in February, with approximately 500,000 people now using its cards.

Monzo CEO Tom Blomfield said: “This is an incredible endorsement of our strategy so far, and sets us up to continue the growth we’ve seen this year into 2018.

“We want to make it as easy as possible for people to manage and make the most of their money, to give people total visibility and control over all of their finances, and offer them their pick of the best products that the market has to offer.

“To help us achieve our ambition, we will continue to hire talented people, focus on building the best product, and bring Monzo to as many people as possible. We’re grateful and flattered to be joined by such high-calibre investors, who have unparalleled experience in growing and scaling globally-successful businesses.”

Today’s news comes after Monzo closed a £19.6m Series C alongside an additional £2.5m raised via crowdfunding in February.

Prior to that, Monzo closed a £1m crowdfunding round in March 2016.

Chi-Hua Chien, managing partner of Goodwater Capital, commented: “Monzo’s growth in the UK has been incredible, and the fact that it’s been driven by word of mouth makes it even more exciting. Customers love Monzo because the company treats them right, solves their problems, and does so with total transparency. These values express themselves powerfully through Monzo’s leadership team, world-class product and innovative services.

“Monzo is already making it as simple and seamless as possible for almost half a million people to manage their money, and we’re looking forward to helping the team bring Monzo to millions more, in the UK and beyond,” added the partner.

Monzo is in the process of rolling out current accounts to its existing users, which the company says should all gain access before the end of the year.

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