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Monzo raises £60M in extension funding round as it approaches 5M customers milestone

Monzo

In a latest development, UK challenger bank Monzo has quietly secured £60 million in funding from new investors including Deliveroo and Stripe investor Novator, Kaiser, and TED Global, as well as existing investor Goodwater. 

Raised £60 million

According to TechCrunch, the new funding is an extension of its previous funding round of £60 million, secured in June. This brings the total funding raised to £125 million since the coronavirus crisis broke out.

Monzo CEO, TS Anil, said: “We’ve raised £125 million this year, achieved strong organic growth and are now nearing five million customers, all while becoming the most switched to the 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.” 

“We’ve shipped several exciting products this year, which are all outperforming our targets. We’re now excited to build on these successes in the year ahead, by shipping more new and innovative products which we know our customers will love. ”

40% down in valuation

With the new funding, the challenger bank is now valued at around £1.25 billion, a 40% dip from its previous valuation of £2 billion. Back in July, the company revealed its annual post-tax loss for 2020 around £113.8 million, which is a huge jump from the £47.1 million recorded last year.

The London-based company is approaching 5 million customers and now has more than 60,000 business users – up from 25,000 sign ups in June. The platform now has more than 100,000 customers across its paid-for current accounts, Monzo Plus and Monzo Premium. 

Co-Founder and Managing Partner of Goodwater Capital, Chi-Hua Chien, said: “From the beginning, Monzo has been creating a new kind of bank that’s giving people more oversight and control over their finances than ever before.”

“This is why Goodwater was an early backer and why we’re pleased to reaffirm our support for Monzo and its mission today.”

Founded in the UK in early 2015, Monzo’s mission is to make money work for everyone. By focusing on solving people’s actual problems, rather than selling financial products, they want to put people back in control of their finances. Founders of the company are Tom Blomfield, Paul Rippon, Gary Dolman, Jonas Huckestein, and Jason Bates.