British challenger bank Monzo has completed a heavily-trailed $400mn funding round, boosting its valuation to $5bn.
In brief:
- Monzo last raised money in late 2021, securing $500mn at a $4.5bn valuation - three times the £1.1bn price tag it attracted in its previous discounted capital-raise earlier that year.
- After a rocky post-pandemic, the lender has bounced back strongly, rolling out a series of new services for pension and investment and preparing for a move into the insurance segment.
- The round, a reward for pushing the bank towards profitability, was led by Alphabet-owned Capital G, with support from Google Ventures, HongShan Capital, as well as existing backers including Passion Capital and Tencent.
What does this mean?
TS Anil, CEO of Monzo says: “We’ve built incredible momentum in the business over the past few years. With backing from global investors, we have the rocket fuel to go after our ambitions harder and faster, building Monzo into the one app that sits at the centre of our customers’ financial lives.”
