Digital Bank Monzo Plans to Raise Over £300m in Funding Round
According to a report by Sky News, digital bank Monzo is in the process of finalizing a funding round of more than £300 million. The investment is expected to be completed by the end of 2023 and would value Monzo at over £3.5 billion. This valuation is on par with the bank’s previous funding round in 2021, where it raised $475 million.
Recovery and Growth
After facing challenges in previous years, including uncertainty about its future in 2020 and an investigation by the FCA for breaches of anti-money laundering rules, Monzo has been making a strong comeback. Under the leadership of CEO TS Anil, who joined the bank in 2021, Monzo achieved monthly profitability for the first time in May 2023, with the aim of achieving its first full-year profit this financial year.
The bank has also been taking strategic steps to expand its reach and offerings. It recently hired a new CEO for its operations in the United States, aiming to accelerate its growth in the American market. Additionally, Monzo launched an investment offering in partnership with BlackRock, providing customers with new investment options. Furthermore, the bank introduced a call status feature to help customers identify and avoid fraudsters posing as bank representatives.
Final Round Before Potential IPO
Insiders view this upcoming funding round as the final round before Monzo prepares for an initial public offering (IPO). An IPO would signify Monzo’s transition into a publicly traded company.
Monzo’s strong recovery, ongoing growth initiatives, and potential IPO plans highlight the bank’s resilience and ambition in the competitive digital banking industry.