Monzo Set to Raise £300m+ Funding Round, Valuing Company at Over £3.5bn
Digital bank Monzo is reportedly working on a £300m+ funding round with a group of investment funds, according to Sky News. The raise, which is expected to be finalised by the end of 2023, would value Monzo at more than £3.5bn according to the report.
This upcoming funding round is significant as it would place Monzo at or above the £3.5bn valuation it achieved in 2021 during its previous funding round led by the Abu Dhabi Growth Fund, where it raised $475m.
Monzo has been on a path to recovery after facing challenges in recent years, including uncertainty about its future in 2020 and an investigation by the Financial Conduct Authority (FCA) for breaches of anti-money laundering and financial crime rules.
In 2021, CEO TS Anil joined Monzo to bring stability to the company. Since then, the bank has made significant progress and achieved monthly profitability for the first time in May 2023, with the aim of turning its first full-year profit this financial year. Monzo has also been actively expanding its operations, hiring a new US CEO to drive growth in the American market, and introducing new features to enhance customer security and experience.
According to insider sources, the current funding round is considered as the final round before Monzo plans to go public with an initial public offering (IPO). This indicates that the company is confident in its future prospects and is positioning itself for further expansion and success in the market.
The completion of this funding round will boost Monzo’s financial position and provide the necessary capital to support its growth strategies. With its innovative approach to digital banking and a strong focus on customer satisfaction, Monzo has the potential to disrupt the traditional banking sector and become a major player in the industry.