Monzo to raise £50M, another funding during COVID-19 pandemic for London fintech

Monzo team Image credits: Monzo

Monzo, the UK-based challenger bank that allows customers to access a range of products and services, is expected to raise a £50 million extension in Series G round from existing shareholders and a new San Francisco-based VC firm Octahedron Capital.

The new funding will take the amount raised by the digital bank during the pandemic to £175 million. It’s worth mentioning that the investment round will be carried out with the same financial terms as the rest of the rounds.

Same financial terms as previous rounds

The fintech unicorn is looking to raise some funds after the COVID-19 pandemic has hit Monzo hard. Notably, this funding round report comes a week after Tom Blomfield announced his departure from Monzo. He has been replaced by former Visa executive TS Anil as CEO, who already joined Monzo US as CEO last year.

Back in December, Monzo raised £60 million funding at a valuation of £1.25 billion, a 40% dip from its previous valuation of £2 billion. In July 2020, the London-based fintech company revealed its annual post-tax loss of around £113.8 million, which is a huge jump from the £47.1 million recorded last year.

Approaching 5 million customers

At present, the company is approaching 5 million (4.99M at present) customers and now has more than 60,000 business users – up from 25,000 signups in June. The platform now has more than 100,000 customers across its paid-for current accounts, Monzo Plus and Monzo Premium.