In an effort to grow globally, especially in the United States, challenger bank Monzo has secured an additional £150 million ($190 million).
Monzo raised £340 million ($425 million) two months earlier, so the London-based startup has already raised over $610 million in 2024 and $1.5 billion since its founding nine years ago.
Alphabet’s CapitalG and Google’s GV, along with renowned sponsors HongShan Capital (previously Sequoia Capital China), Passion Capital, and Tencent, made rare co-investments in the first tranche of the Series I financing. With this extension, CapitalG and other current investors contributed extra money, as did new supporter Hedosophia, which had previously supported Monzo competitor Wise.
In March, Monzo reported a pre-money valuation of £3.6 billion ($4.6 billion) and a post-money valuation of £4 billion ($5 billion). Since the corporation now reports that its post-money total is £4.1 billion ($5.2 billion), not much has changed in the last two months.
Although Monzo is largely well-known in its home market of the United Kingdom, it has been attempting to break into the American market for some years. However, since early 2022, it has been running as a mobile banking app in partnership with Ohio’s Sutton Bank, without having its own banking license. Back in October, the business named Conor Walsh, director of worldwide product for Block’s Cash App, as its new CEO for its U.S. operations.
Monzo currently has 400,000 corporate clients and over 9 million retail customers in the United Kingdom. With a virtual war chest at its disposal, the firm is well-funded to attempt to replicate some of its success across the pond. Sales quadrupled in the most recent financial year.
TS Anil, CEO of Monzo, said in a statement to Eltrys, “The tremendous interest we see from global investors is testament to the momentum and strength of our business model and the commitment of our teams, who put our customers at the heart of everything we do.” “There’s no question in my mind that the best of Monzo is yet to come, with even more rocket fuel for our ambitions and exciting products in the pipeline.”
