Introduction
Monzo, the digital bank, is reportedly in the process of securing more than £300 million in a funding round with a group of investment funds, as reported by Sky News. The funding round is expected to be finalized by the end of 2023 and would value Monzo at over £3.5 billion.
Recovery and Growth
Monzo has been on a journey of recovery after facing challenges over the past few years. In 2020, there was significant uncertainty about the bank’s future. Furthermore, the Financial Conduct Authority (FCA) investigated Monzo for breaches of anti-money laundering and financial crime rules. However, in 2021, Monzo successfully raised $475 million, which valued the bank at £3.5 billion.
Since then, Monzo has made significant strides in stabilizing the bank and achieving profitability. CEO TS Anil, who joined the company in 2021, has played a crucial role in this recovery. In May 2023, Monzo reached monthly profitability for the first time and aims to achieve its first full-year profit this financial year.
Recent Initiatives
In addition to its recovery efforts, Monzo has recently embarked on several new initiatives. The bank hired a new US CEO to drive growth in America, launched an investment offering in partnership with BlackRock, and introduced a call status feature to help customers identify potential fraudsters.
Final Funding Round and IPO Plans
This latest funding round is being viewed by insiders as the final round before Monzo prepares for an initial public offering (IPO). If successful, an IPO would mark a significant milestone for the digital bank.
Conclusion
Monzo’s plan to raise over £300 million in a funding round demonstrates the bank’s strong recovery and growth trajectory. The company aims to solidify its position in the market, achieve profitability, and potentially pursue an IPO in the future.
