Monzo has just closed a $500mn funding round and confirmed its new valuation as $4.5bn.
In Brief:
The round involved new investors including the Abu Dhabi Growth Fund.
Monzo added one million new customers over the past year.
It also saw revenues increase 18% which it says gave investors faith.
What does this mean?
Monzo’s valuation has recovered from a dip where it reduced from £2bn to £1.25bn in 2020.
Some of Monzo’s growth has been put down to new offerings such as its “buy now, pay later” tool Flex as well as business-related products. Monzo has been one of the slower challenger banks to break even, but still says it anticipates an IPO “soon” - according to Sifted.
